Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Put Spread trade opportunity for CLOUDFLARE INC (NET) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. NET was recently trading at $54.90 and has an implied volatility of 80.44% for this period. Based on an analysis of the options available for NET expiring on 16-Oct-2020, there is a 34.15% likelihood that the underlying will close within the analyzed range of $52.24-$54.90 at expiration. In this scenario, the average linear return for the trade would be 39.51%. Big -10.73% Change: After closing the last trading session at $61.50, CLOUDFLARE INC opened today at $56.00 and has reached a low of $54.89. Trade approach: A movement as big as -10.73% 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 $54.90 on 16-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 CLOUDFLARE INC closes at or below $55.45 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 57.95% 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.