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Quantchabot has detected a promising Bull Put Spread trade opportunity for RINGCENTRAL INC. (RNG) for the 29-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RNG was recently trading at $390.77 and has an implied volatility of 50.21% for this period. Based on an analysis of the options available for RNG expiring on 29-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $390.83-$460.80 at expiration. In this scenario, the average linear return for the trade would be 70.99%.

52 week high: RINGCENTRAL INC. recently reached a new 52-week high at $393.91. RNG had traded in the range $134.85-$390.67 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 RNG maintains its current direction and does not revert back to pricing on the bearish side of $390.77 on 29-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 bullish strategy, the trade would be profitable if RINGCENTRAL INC. closes at or above $389.10 on 29-Jan-2021. Based on our risk-neutral analysis, there is a 51.08% 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.