Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Put Spread trade opportunity for SLACK TECHNOLOGIES INC (WORK) for the 27-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WORK was recently trading at $28.55 and has an implied volatility of 52.09% for this period. Based on an analysis of the options available for WORK expiring on 27-Nov-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $24.17-$28.55 at expiration. In this scenario, the average linear return for the trade would be 48.71%.

Big -7.34% Change: After closing the last trading session at $30.81, SLACK TECHNOLOGIES INC opened today at $29.24 and has reached a low of $28.34.

Trade approach: A movement as big as -7.34% is a significantly bearish indicator, so this trade is designed to be profitable if WORK maintains its current direction and does not revert back to pricing on the bullish side of $28.55 on 27-Nov-2020. 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 SLACK TECHNOLOGIES INC closes at or below $28.67 on 27-Nov-2020. Based on our risk-neutral analysis, there is a 50.98% 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.