Quantchabot has detected a new Bear Call Spread trade opportunity for MONGODB INC. CLASS A COMMON STOCK (MDB) for the 16-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MDB was recently trading at $176.62 and has an implied volatility of 54.02% for this period. Based on an analysis of the options available for MDB expiring on 16-May-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $146.74-$177.60 at expiration. In this scenario, the average linear return for the trade would be 42.69%.
52 week low: MONGODB INC. CLASS A COMMON STOCK recently reached a new 52-week low at $170.66. MDB had traded in the range $173.13-$387.19 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 MDB maintains its current direction and does not revert back to pricing on the bullish side of $176.62 on 16-May-2025. 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 MONGODB INC. CLASS A COMMON STOCK closes at or below $177.98 on 16-May-2025. Based on our risk-neutral analysis, there is a 50.45% 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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