Quantchabot has detected a promising Bear Call Spread trade opportunity for ATLASSIAN CORPORATION PLC CLASS A ORDINARY SHARES (TEAM) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TEAM was recently trading at $167.32 and has an implied volatility of 73.97% for this period. Based on an analysis of the options available for TEAM expiring on 22-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $131.28-$167.53 at expiration. In this scenario, the average linear return for the trade would be 26.08%.
Big -8.97% Change: After closing the last trading session at $183.81, ATLASSIAN CORPORATION PLC CLASS A ORDINARY SHARES opened today at $173.97 and has reached a low of $166.04.
Trade approach: A movement as big as -8.97% is a significantly bearish indicator, so this trade is designed to be profitable if TEAM maintains its current direction and does not revert back to pricing on the bullish side of $167.32 on 22-Jul-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 ATLASSIAN CORPORATION PLC CLASS A ORDINARY SHARES closes at or below $167.55 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 50.02% 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.