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Quantchabot has detected a promising Bear Call Spread trade opportunity for COUPA SOFTWARE INCORPORATED COMMON STOCK (COUP) for the 3-Dec-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
COUP was recently trading at $201.40 and has an implied volatility of 48.73% for this period. Based on an analysis of the options available for COUP expiring on 3-Dec-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $186.37-$201.40 at expiration. In this scenario, the average linear return for the trade would be 68.75%.
52 week low: COUPA SOFTWARE INCORPORATED COMMON STOCK recently reached a new 52-week low at $194.25. COUP had traded in the range $203.22-$377.04 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 COUP maintains its current direction and does not revert back to pricing on the bullish side of $201.40 on 3-Dec-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 COUPA SOFTWARE INCORPORATED COMMON STOCK closes at or below $201.90 on 3-Dec-2021. Based on our risk-neutral analysis, there is a 51.26% 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.