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Quantchabot has detected a promising Covered Put trade opportunity for FUBOTV (FUBO) for the 22-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FUBO was recently trading at $32.87 and has an implied volatility of 147.89% for this period. Based on an analysis of the options available for FUBO expiring on 22-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $26.70-$32.87 at expiration. In this scenario, the average linear return for the trade would be 96.77%.

Big -7.72% Change: After closing the last trading session at $35.62, FUBOTV opened today at $35.10 and has reached a low of $32.20.

Trade approach: A movement as big as -7.72% is a significantly bearish indicator, so this trade is designed to be profitable if FUBO maintains its current direction and does not revert back to pricing on the bullish side of $32.87 on 22-Jan-2021. 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 FUBOTV closes at or below $49.15 on 22-Jan-2021. Based on our risk-neutral analysis, there is a 97.34% 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.