Tony Zhang's Okta Options Trade
The stock is trading in a very wide range between $210 and $290, it has underperformed its sector and recently it recorded some lower highs. It also had a strong last week, which Zhang sees as an opportunity to look for some short exposure. He expects the stock to test its support at $210.
To make a bearish bet, Zhang wants to buy the August $220/$190 put spread for a total cost of $8.60. The trade breaks even at $211.40 or 6.62% below the closing price on Friday. If the stock drops at least 16%, to $190 or lower, the trade is going to reach its maximal profit of $21.40.
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