52-Week Low Alert: Trading today’s movement in TWILIO INC $TWLO

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Quantchabot has detected a promising Bear Call Spread trade opportunity for TWILIO INC (TWLO) for the 11-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TWLO was recently trading at $229.39 and has an implied volatility of 55.09% for this period. Based on an analysis of the options available for TWLO expiring on 11-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $195.21-$229.40 at expiration. In this scenario, the average linear return for the trade would be 40.96%.

52 week low: TWILIO INC recently reached a new 52-week low at $223.95. TWLO had traded in the range $228.55-$457.30 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 TWLO maintains its current direction and does not revert back to pricing on the bullish side of $229.39 on 11-Feb-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 TWILIO INC closes at or below $230.45 on 11-Feb-2022. Based on our risk-neutral analysis, there is a 51.13% 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.