52-Week Low Alert: Trading today’s movement in TOAST INC $TOST

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for TOAST INC (TOST) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TOST was recently trading at $26.03 and has an implied volatility of 83.90% for this period. Based on an analysis of the options available for TOST expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $20.05-$26.03 at expiration. In this scenario, the average linear return for the trade would be 53.45%.

52 week low: TOAST INC recently reached a new 52-week low at $25.70. TOST had traded in the range $25.95-$69.93 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 TOST maintains its current direction and does not revert back to pricing on the bullish side of $26.03 on 18-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 TOAST INC closes at or below $26.55 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 53.01% 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.