TEAM
Atlassian
Rating 3.5 / 5 Recommendation Open trade

Credit put spread analysis · · Good setup

IV Rank
59
Implied volatility percentile
Trend
0.34
Long-term trend score
Safety
5/9
Quality checks passed
Drop
-5.2%
Day 2 of drop
1Y Change
35.5%
Trailing 12 months
Earnings
Clear
No event in window

AI analysis

The stock's sharp 5. 15% drop presents a potential entry point for a moderately aggressive trader, but the overall context introduces significant concerns that cap the rating. The stock is still up 35.

5% over two months, indicating a pullback within a strong uptrend, which is favorable for selling puts. However, the 'Safety' score of 5/9 is mediocre, and the elevated IV of 59% suggests high volatility, which inflates premiums but also indicates higher risk. The lack of a reversal signal suggests the downtrend could continue, increasing the chance of the short strike being tested.

A credit put spread can capitalize on the high IV and the expectation that the uptrend will resume, but the risk of further decline is real. Given the moderately aggressive temperament, a spread can be structured to provide a decent risk/reward, but it should be placed cautiously, further out-of-the-money than usual to account for the recent volatility and weak safety score. The credit-to-width ratio target is achievable, making this a decent, but not strong, setup.

A more conservative trader would wait for stabilization, but leaning OPEN is justifiable with careful strike selection.

Recommended credit put spread

AI-suggested setup based on the latest screen. Expiration Jun 25, 2026.

Sell
$85.00
Short put (collects premium)
Buy
$82.00
Long put (caps risk)
Width
$3.00
Estimated credit
$1.30
Max risk
$1.70
Return on risk
76.5%
Expiration
Jun 25, 2026

For entertainment purposes only. Not a recommendation to trade. Disclaimer.

Earlier analyses

  1. 2.5/5 Pass

    The stock's sharp 5.15% drop on a day when the broader market was down is a concern, but the overall context makes this a weak setup for a credit put spread. The stock is still up a massive 35.5% over two months, indicat…

  2. 2.5/5 Pass

    The setup is weak and does not meet our criteria for a moderately aggressive, lean-OPEN approach. The stock has dropped -5.15% on the day, but this comes after a massive 35.5% run-up over just two months, suggesting sign…

  3. 2.5/5 Pass

    The stock's profile presents significant challenges for a credit put spread at this moment. While the -5.15% drop creates a potential entry point for a moderately aggressive trader, the overall context is concerning. The…