Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for CLOUDFLARE INC (NET) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. NET was recently trading at $148.50 and has an implied volatility of 80.01% for this period. Based on an analysis of the options available for NET expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $111.68-$148.52 at expiration. In this scenario, the average linear return for the trade would be 73.88%. Big -7.01% Change: After closing the last trading session at $159.69, CLOUDFLARE INC opened today at $153.47 and has reached a low of $144.52. Trade approach: A movement as big as -7.01% is a significantly bearish indicator, so this trade is designed to be profitable if NET maintains its current direction and does not revert back to pricing on the bullish side of $148.50 on 21-Jan-2022. 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 CLOUDFLARE INC closes at or below $155.20 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 56.13% 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.