Today’s model portfolio spans 5 quantitatively-scored trades across our watchlist.
Each position is sized to fit within a $4,000 budget slice. The post below is a deep dive on one of those trades — use the table to explore the others.
Today’s $20,000 Model Portfolio · 5 Trades
| Ticker & Strategy | POP | Max Profit | Contracts | Allocated |
|---|---|---|---|---|
| MUBull Put Spread↗ | 95% | $1,320 | 1 lot | $3,680 |
| TSLABear Call Spread↗ | 95% | $630 | 9 lots | $3,870 |
| SLVBear Call Spread↗ | 95% | $713 | 23 lots | $3,887 |
| INTCBull Put Spread↗ | 95% | $648 | 4 lots | $3,352 |
| NOWTHIS POSTBull Put Spread | 95% | $653 | 9 lots | $3,848 |
| Portfolio Total | $3,963 | 5 trades | $18,636 (+21.3% if max profit) |
Equal-weight sizing: $20,000 split across 5 trades at $4,000 per position. Contracts = floor(position budget ÷ max risk per contract) so each trade stays within its risk envelope. POP = probability of profit at expiration (model-derived). Max Profit = maximum gain if held to expiration and the spread expires at full profit. Click any row to read the full trade analysis.
Company & Market Context
ServiceNow, Inc. (NOW) is a leading enterprise software platform in the Technology sector, delivering cloud-based workflow automation and IT service management solutions to large organisations worldwide. The stock has drawn systematic attention in today's scan due to its elevated implied volatility environment — with at-the-money implied volatility sitting notably high — creating a backdrop where option sellers can collect meaningful premium relative to the risk assumed. With neutral near-term momentum, the options market is pricing in uncertainty without a clear directional lean, a regime that tends to favour defined-risk income strategies over speculative directional bets.
Why This Trade Setup
The Bull Put Spread expresses a moderately bullish-to-neutral view on ServiceNow over the next 21 days. By selling a put at a lower strike and buying a further out-of-the-money put for protection, the position collects a net credit while capping the maximum loss — a defined-risk structure well-suited to elevated volatility regimes. Both strikes are placed meaningfully below the current underlying price, giving the trade a substantial downside buffer before the short put comes under pressure. The composite quantitative score of 0.84 — derived from Black-Scholes probability weighting, implied volatility regime classification, and momentum signals — reflects a high-conviction setup. A probability of profit near 95% underscores that the strike placement, as modelled, sits comfortably in low-risk territory. Within an illustrative equal-weighted portfolio framework, this position sizes to 9 contracts, allocating roughly $3,848 of capital at risk — consistent with disciplined position sizing across a diversified spread portfolio.
Key Risks
- Sharp downside move: A sudden, significant decline in NOW shares — driven by an earnings surprise, macro shock, or sector rotation — could push the stock toward or below the short put strike, eroding or eliminating the credit collected.
- Volatility expansion: A spike in implied volatility before expiration increases the mark-to-market loss on the position, even if the stock remains above the strikes.
- Early assignment risk: Although uncommon with spreads, the short put leg carries theoretical early assignment risk, particularly around dividend dates or periods of extreme market stress.
- Liquidity risk: Wider bid-ask spreads in stressed markets can make it costly to exit the position before expiration.
Ready to explore this trade and hundreds more? Request beta access on QuantMint — institutional-grade quantitative analysis built for individual investors.
Important Disclaimer: This content is generated automatically for informational and educational purposes only. It does not constitute financial advice, a solicitation, or a recommendation to buy or sell any security. Options trading involves significant risk and may not be suitable for all investors. You may lose more than your initial investment. Past performance does not guarantee future results. Always conduct your own due diligence and consult a qualified financial advisor before making any investment decisions. QuantMint is not a registered investment adviser.