Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for NIKOLA CORP (NKLA) for the 30-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. NKLA was recently trading at $28.16 and has an implied volatility of 167.81% for this period. Based on an analysis of the options available for NKLA expiring on 30-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.24-$28.16 at expiration. In this scenario, the average linear return for the trade would be 480.00%. Big -17.64% Change: After closing the last trading session at $34.19, NIKOLA CORP opened today at $24.97 and has reached a low of $24.05. Trade approach: A movement as big as -17.64% is a significantly bearish indicator, so this trade is designed to be profitable if NKLA maintains its current direction and does not revert back to pricing on the bullish side of $28.16 on 30-Oct-2020. 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 NIKOLA CORP closes at or below $41.94 on 30-Oct-2020. Based on our risk-neutral analysis, there is a 76.52% 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.