52-Week Low Alert: Trading today’s movement in SNOWFLAKE INC $SNOW

Quantchabot has detected a new Bear Call Spread trade opportunity for SNOWFLAKE INC (SNOW) for the 16-Aug-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SNOW was recently trading at $128.53 and has an implied volatility of 39.64% for this period. Based on an analysis of the options available for SNOW expiring on 16-Aug-2024, there is a 34.17% likelihood that the underlying will close within the analyzed range of $109.49-$129.88 at expiration. In this scenario, the average linear return for the trade would be 35.10%.

52 week low: SNOWFLAKE INC recently reached a new 52-week low at $125.89. SNOW had traded in the range $128.41-$237.72 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 SNOW maintains its current direction and does not revert back to pricing on the bullish side of $128.53 on 16-Aug-2024. 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 $130.00 on 16-Aug-2024. Based on our risk-neutral analysis, there is a 50.23% 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.


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