Quantchabot has detected a promising Short Risk Reversal trade opportunity for MONDAY.COM LTD. ORDINARY SHARES (MNDY) for the 21-Jun-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MNDY was recently trading at $176.59 and has an implied volatility of 53.75% for this period. Based on an analysis of the options available for MNDY expiring on 21-Jun-2024, there is a 30.42% likelihood that the underlying will close within the analyzed range of $114.25-$176.59 at expiration. In this scenario, the average linear return for the trade would be 124.21%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, MONDAY.COM LTD. ORDINARY SHARES was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.
Trade approach: The recent sentiment change in MNDY on StockTwits appears to be moderately negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bearish strategy, the trade would be profitable if MONDAY.COM LTD. ORDINARY SHARES closed at or below $220.35 on 21-Jun-2024. Based on our analysis, there is a 64.34% 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.