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Quantchabot has detected a promising Bull Put Spread trade opportunity for TWILIO INC (TWLO) for the 12-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TWLO was recently trading at $402.96 and has an implied volatility of 42.77% for this period. Based on an analysis of the options available for TWLO expiring on 12-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $402.97-$422.16 at expiration. In this scenario, the average linear return for the trade would be 61.89%.

52 week high: TWILIO INC recently reached a new 52-week high at $407.77. TWLO had traded in the range $68.06-$404.27 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 TWLO maintains its current direction and does not revert back to pricing on the bearish side of $402.96 on 12-Feb-2021. 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 TWILIO INC closes at or above $402.35 on 12-Feb-2021. Based on our risk-neutral analysis, there is a 51.31% 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.