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Quantchabot has detected a promising Bull Put Spread trade opportunity for SMARTSHEET INC (SMAR) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SMAR was recently trading at $74.17 and has an implied volatility of 52.40% for this period. Based on an analysis of the options available for SMAR expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $74.19-$93.83 at expiration. In this scenario, the average linear return for the trade would be 71.48%.

Big 18.73% Change: After closing the last trading session at $62.47, SMARTSHEET INC opened today at $73.56 and has reached a high of $75.49.

Trade approach: A movement as big as 18.73% is a significantly bullish indicator, so this trade is designed to be profitable if SMAR maintains its current direction and does not revert back to pricing on the bearish side of $74.17 on 19-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 SMARTSHEET INC closes at or above $72.90 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 52.98% 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.