Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Long Risk Reversal trade opportunity for TSAKOS ENERGY NAVIGATION (TNP) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TNP was recently trading at $4.32 and has an implied volatility of 198.52% for this period. Based on an analysis of the options available for TNP expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $4.32-$6.66 at expiration. In this scenario, the average linear return for the trade would be 57.33%.
52 week high: TSAKOS ENERGY NAVIGATION recently reached a new 52-week high at $4.77. TNP had traded in the range $1.70-$4.66 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if TNP maintains its current direction and does not revert back to pricing on the bearish side of $4.32 on 15-May-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 TSAKOS ENERGY NAVIGATION closes at or above $4.25 on 15-May-2020. Based on our risk-neutral analysis, there is a 51.52% 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.