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Quantchabot has detected a promising Long Risk Reversal trade opportunity for WW INTERNATIONAL INC (WW) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WW was recently trading at $44.45 and has an implied volatility of 68.46% for this period. Based on an analysis of the options available for WW expiring on 21-Feb-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $44.54-$56.40 at expiration. In this scenario, the average linear return for the trade would be 50.03%.
Big 8.31% Change: After closing the last trading session at $41.04, WW INTERNATIONAL INC opened today at $40.93 and has reached a high of $45.90.
Trade approach: A movement as big as 8.31% is a significantly bullish indicator, so this trade is designed to be profitable if WW maintains its current direction and does not revert back to pricing on the bearish side of $44.45 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 WW INTERNATIONAL INC closes at or above $43.65 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 53.42% 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.