52-Week Low Alert: Trading today’s movement in DROPBOX INC. CLASS A COMMON STOCK $DBX

Quantchabot has detected a new Bear Call Spread trade opportunity for DROPBOX INC. CLASS A COMMON STOCK (DBX) for the 26-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DBX was recently trading at $21.29 and has an implied volatility of 26.43% for this period. Based on an analysis of the options available for DBX expiring on 26-Jul-2024, there is a 34.18% likelihood that the underlying will close within the analyzed range of $19.53-$21.44 at expiration. In this scenario, the average linear return for the trade would be 84.11%.

52 week low: DROPBOX INC. CLASS A COMMON STOCK recently reached a new 52-week low at $21.16. DBX had traded in the range $21.34-$33.43 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 DBX maintains its current direction and does not revert back to pricing on the bullish side of $21.29 on 26-Jul-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 DROPBOX INC. CLASS A COMMON STOCK closes at or below $21.65 on 26-Jul-2024. Based on our risk-neutral analysis, there is a 54.17% 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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