Big Loser Alert: Trading today’s -7.5% move in MONGODB INC. CLASS A COMMON STOCK $MDB

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Put Spread trade opportunity for MONGODB INC. CLASS A COMMON STOCK (MDB) for the 4-Mar-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MDB was recently trading at $400.00 and has an implied volatility of 57.45% for this period. Based on an analysis of the options available for MDB expiring on 4-Mar-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $323.24-$400.02 at expiration. In this scenario, the average linear return for the trade would be 41.69%.

Big -7.51% Change: After closing the last trading session at $432.49, MONGODB INC. CLASS A COMMON STOCK opened today at $432.09 and has reached a low of $397.36.

Trade approach: A movement as big as -7.51% is a significantly bearish indicator, so this trade is designed to be profitable if MDB maintains its current direction and does not revert back to pricing on the bullish side of $400.00 on 4-Mar-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 MONGODB INC. CLASS A COMMON STOCK closes at or below $400.80 on 4-Mar-2022. Based on our risk-neutral analysis, there is a 50.36% 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.