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Quantchabot has detected a promising Bull Put Spread trade opportunity for ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO (ZM) for the 27-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ZM was recently trading at $550.58 and has an implied volatility of 65.22% for this period. Based on an analysis of the options available for ZM expiring on 27-Nov-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $550.67-$680.32 at expiration. In this scenario, the average linear return for the trade would be 76.81%.

52 week high: ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO recently reached a new 52-week high at $575.69. ZM had traded in the range $60.97-$565.45 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if ZM maintains its current direction and does not revert back to pricing on the bearish side of $550.58 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 bullish strategy, the trade would be profitable if ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO closes at or above $547.20 on 27-Nov-2020. Based on our risk-neutral analysis, there is a 51.19% 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.