Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for WORKDAY (WDAY) for the 27-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WDAY was recently trading at $195.34 and has an implied volatility of 54.89% for this period. Based on an analysis of the options available for WDAY expiring on 27-May-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $169.88-$195.40 at expiration. In this scenario, the average linear return for the trade would be 23.61%.
52 week low: WORKDAY recently reached a new 52-week low at $194.79. WDAY had traded in the range $200.67-$307.81 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 WDAY maintains its current direction and does not revert back to pricing on the bullish side of $195.34 on 27-May-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 WORKDAY closes at or below $195.50 on 27-May-2022. Based on our risk-neutral analysis, there is a 50.14% 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.