Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Long Risk Reversal trade opportunity for BOEING (BA) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BA was recently trading at $143.98 and has an implied volatility of 136.47% for this period. Based on an analysis of the options available for BA expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $144.07-$203.08 at expiration. In this scenario, the average linear return for the trade would be 90.91%.
Big 12.76% Change: After closing the last trading session at $127.68, BOEING opened today at $154.90 and has reached a high of $156.51.
Trade approach: A movement as big as 12.76% is a significantly bullish indicator, so this trade is designed to be profitable if BA maintains its current direction and does not revert back to pricing on the bearish side of $143.98 on 17-Apr-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 BOEING closes at or above $142.75 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.07% 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.