Quantchabot has detected a new Bear Call Spread trade opportunity for TWILIO INC (TWLO) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TWLO was recently trading at $95.44 and has an implied volatility of 54.65% for this period. Based on an analysis of the options available for TWLO expiring on 2-May-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $78.36-$96.03 at expiration. In this scenario, the average linear return for the trade would be 54.12%.
Big -7.17% Change: After closing the last trading session at $102.81, TWILIO INC opened today at $101.73 and has reached a low of $95.16.
Trade approach: A movement as big as -7.17% is a significantly bearish indicator, so this trade is designed to be profitable if TWLO maintains its current direction and does not revert back to pricing on the bullish side of $95.44 on 2-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 TWILIO INC closes at or below $96.10 on 2-May-2025. Based on our risk-neutral analysis, there is a 50.15% 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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