Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Long Risk Reversal trade opportunity for OASIS PETROLEUM (OAS) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
OAS was recently trading at $3.44 and has an implied volatility of 63.68% for this period. Based on an analysis of the options available for OAS expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.45-$4.45 at expiration. In this scenario, the average linear return for the trade would be 31.46%.
Big 7.17% Change: After closing the last trading session at $3.21, OASIS PETROLEUM opened today at $3.42 and has reached a high of $3.52.
Trade approach: A movement as big as 7.17% is a significantly bullish indicator, so this trade is designed to be profitable if OAS maintains its current direction and does not revert back to pricing on the bearish side of $3.44 on 21-Feb-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if OASIS PETROLEUM closes at or above $3.25 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 59.14% 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.