Big Loser Alert: Trading today’s -7.0% move in DOCUSIGN INC. COMMON STOCK $DOCU

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Quantchabot has detected a promising Bear Call Spread trade opportunity for DOCUSIGN INC. COMMON STOCK (DOCU) for the 26-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DOCU was recently trading at $244.83 and has an implied volatility of 43.37% for this period. Based on an analysis of the options available for DOCU expiring on 26-Nov-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $233.63-$244.83 at expiration. In this scenario, the average linear return for the trade would be 54.14%.

Big -7.03% Change: After closing the last trading session at $263.34, DOCUSIGN INC. COMMON STOCK opened today at $262.01 and has reached a low of $244.50.

Trade approach: A movement as big as -7.03% is a significantly bearish indicator, so this trade is designed to be profitable if DOCU maintains its current direction and does not revert back to pricing on the bullish side of $244.83 on 26-Nov-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 DOCUSIGN INC. COMMON STOCK closes at or below $245.14 on 26-Nov-2021. Based on our risk-neutral analysis, there is a 51.07% 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.