Quantchabot has detected a promising Bear Call Spread trade opportunity for SNOWFLAKE INC (SNOW) for the 24-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SNOW was recently trading at $134.37 and has an implied volatility of 58.35% for this period. Based on an analysis of the options available for SNOW expiring on 24-Feb-2023, there is a 34.22% likelihood that the underlying will close within the analyzed range of $113.89-$134.92 at expiration. In this scenario, the average linear return for the trade would be 16.69%.
Big -7.83% Change: After closing the last trading session at $145.79, SNOWFLAKE INC opened today at $138.27 and has reached a low of $134.34.
Trade approach: A movement as big as -7.83% is a significantly bearish indicator, so this trade is designed to be profitable if SNOW maintains its current direction and does not revert back to pricing on the bullish side of $134.37 on 24-Feb-2023. 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 SNOWFLAKE INC closes at or below $134.92 on 24-Feb-2023. Based on our risk-neutral analysis, there is a 50.01% 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.