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ServiceNow is down almost while the market sits at all-time highs. That kind of divergence is exactly what options traders look for.
The trade: buy one 110 put, sell three 100 puts for a net credit of $190. That structure gives you a break-even near $95, right where the stock was trading just a few weeks ago. Probability of profit sits at 86% and theta decay runs at $10 a day. The only catch is buying power this one uses about $7,600. But buying a 75 put as a wing brings that down under $3,000 with almost no impact on the credit or the probability.
By tastylive4.9
8989 ratings
ServiceNow is down almost while the market sits at all-time highs. That kind of divergence is exactly what options traders look for.
The trade: buy one 110 put, sell three 100 puts for a net credit of $190. That structure gives you a break-even near $95, right where the stock was trading just a few weeks ago. Probability of profit sits at 86% and theta decay runs at $10 a day. The only catch is buying power this one uses about $7,600. But buying a 75 put as a wing brings that down under $3,000 with almost no impact on the credit or the probability.

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