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Quantchabot has detected a promising Long Risk Reversal trade opportunity for AXONICS MODULATION TECHNOLOGIES INC (AXNX) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AXNX was recently trading at $31.93 and has an implied volatility of 61.65% for this period. Based on an analysis of the options available for AXNX expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $32.00-$39.90 at expiration. In this scenario, the average linear return for the trade would be 38.73%.
Big 18.52% Change: After closing the last trading session at $26.94, AXONICS MODULATION TECHNOLOGIES INC opened today at $31.01 and has reached a high of $32.34.
Trade approach: A movement as big as 18.52% is a significantly bullish indicator, so this trade is designed to be profitable if AXNX maintains its current direction and does not revert back to pricing on the bearish side of $31.93 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 AXONICS MODULATION TECHNOLOGIES INC closes at or above $31.55 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 52.53% 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.