52-Week Low Alert: Trading today’s movement in WORKDAY $WDAY

Quantchabot has detected a promising Bear Call Spread trade opportunity for WORKDAY (WDAY) for the 19-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WDAY was recently trading at $138.06 and has an implied volatility of 48.14% for this period. Based on an analysis of the options available for WDAY expiring on 19-Aug-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $114.03-$138.30 at expiration. In this scenario, the average linear return for the trade would be 25.52%.

52 week low: WORKDAY recently reached a new 52-week low at $135.05. WDAY had traded in the range $136.27-$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 $138.06 on 19-Aug-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 $138.51 on 19-Aug-2022. Based on our risk-neutral analysis, there is a 50.32% 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.