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Quantchabot has detected a promising Bear Put Spread trade opportunity for VEEVA SYSTEMS INC (VEEV) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VEEV was recently trading at $223.91 and has an implied volatility of 38.40% for this period. Based on an analysis of the options available for VEEV expiring on 18-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $198.72-$223.92 at expiration. In this scenario, the average linear return for the trade would be 66.97%.
52 week low: VEEVA SYSTEMS INC recently reached a new 52-week low at $222.20. VEEV had traded in the range $223.91-$343.96 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 VEEV maintains its current direction and does not revert back to pricing on the bullish side of $223.91 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 VEEVA SYSTEMS INC closes at or below $224.20 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.42% 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.