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Quantchabot has detected a promising Bull Put Spread trade opportunity for NUTANIX INC. CLASS A COMMON STOCK (NTNX) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NTNX was recently trading at $34.89 and has an implied volatility of 42.18% for this period. Based on an analysis of the options available for NTNX expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $34.90-$41.30 at expiration. In this scenario, the average linear return for the trade would be 62.22%.
Big 7.09% Change: After closing the last trading session at $32.58, NUTANIX INC. CLASS A COMMON STOCK opened today at $33.53 and has reached a high of $35.06.
Trade approach: A movement as big as 7.09% is a significantly bullish indicator, so this trade is designed to be profitable if NTNX maintains its current direction and does not revert back to pricing on the bearish side of $34.89 on 21-Jan-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if NUTANIX INC. CLASS A COMMON STOCK closes at or above $34.04 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 55.85% 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.