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Quantchabot has detected a promising Bear Put Spread trade opportunity for SENTINELONE INC (S) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
S was recently trading at $43.38 and has an implied volatility of 75.41% for this period. Based on an analysis of the options available for S expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $38.71-$43.38 at expiration. In this scenario, the average linear return for the trade would be 35.67%.
Big -7.68% Change: After closing the last trading session at $46.99, SENTINELONE INC opened today at $47.12 and has reached a low of $43.28.
Trade approach: A movement as big as -7.68% is a significantly bearish indicator, so this trade is designed to be profitable if S maintains its current direction and does not revert back to pricing on the bullish side of $43.38 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 SENTINELONE INC closes at or below $43.60 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 51.77% 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.