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Quantchabot has detected a promising Long Risk Reversal trade opportunity for LAS VEGAS SANDS (LVS) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LVS was recently trading at $48.31 and has an implied volatility of 62.69% for this period. Based on an analysis of the options available for LVS expiring on 19-Jun-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $48.34-$61.44 at expiration. In this scenario, the average linear return for the trade would be 63.57%.
Big 10.34% Change: After closing the last trading session at $43.78, LAS VEGAS SANDS opened today at $44.68 and has reached a high of $48.34.
Trade approach: A movement as big as 10.34% is a significantly bullish indicator, so this trade is designed to be profitable if LVS maintains its current direction and does not revert back to pricing on the bearish side of $48.31 on 19-Jun-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 LAS VEGAS SANDS closes at or above $47.42 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 53.19% 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.