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Quantchabot has detected a promising Bear Call Spread trade opportunity for RINGCENTRAL INC. (RNG) for the 29-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RNG was recently trading at $213.65 and has an implied volatility of 42.94% for this period. Based on an analysis of the options available for RNG expiring on 29-Oct-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $183.99-$213.67 at expiration. In this scenario, the average linear return for the trade would be 65.90%.
52 week low: RINGCENTRAL INC. recently reached a new 52-week low at $212.66. RNG had traded in the range $217.23-$449.00 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if RNG maintains its current direction and does not revert back to pricing on the bullish side of $213.65 on 29-Oct-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if RINGCENTRAL INC. closes at or below $213.80 on 29-Oct-2021. Based on our risk-neutral analysis, there is a 50.16% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.