Big Loser Alert: Trading today’s -16.6% move in TWILIO INC $TWLO

Quantchabot has detected a promising Bear Call Spread trade opportunity for TWILIO INC (TWLO) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TWLO was recently trading at $81.92 and has an implied volatility of 66.66% for this period. Based on an analysis of the options available for TWLO expiring on 21-Oct-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $60.52-$82.31 at expiration. In this scenario, the average linear return for the trade would be 22.85%.

Big -16.57% Change: After closing the last trading session at $98.19, TWILIO INC opened today at $85.09 and has reached a low of $80.12.

Trade approach: A movement as big as -16.57% is a significantly bearish indicator, so this trade is designed to be profitable if TWLO maintains its current direction and does not revert back to pricing on the bullish side of $81.92 on 21-Oct-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 TWILIO INC closes at or below $82.50 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.30% 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.