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Quantchabot has detected a promising Bear Put Spread trade opportunity for BILL.COM HOLDINGS INC (BILL) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BILL was recently trading at $183.46 and has an implied volatility of 74.74% for this period. Based on an analysis of the options available for BILL expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $160.81-$183.46 at expiration. In this scenario, the average linear return for the trade would be 45.19%.
Big -9.15% Change: After closing the last trading session at $201.93, BILL.COM HOLDINGS INC opened today at $193.88 and has reached a low of $183.35.
Trade approach: A movement as big as -9.15% is a significantly bearish indicator, so this trade is designed to be profitable if BILL maintains its current direction and does not revert back to pricing on the bullish side of $183.46 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 bearish strategy, the trade would be profitable if BILL.COM HOLDINGS INC closes at or below $184.00 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.88% 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.