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Quantchabot has detected a promising Long Risk Reversal trade opportunity for ZIOPHARM ONCOLOGY (ZIOP) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ZIOP was recently trading at $3.34 and has an implied volatility of 81.68% for this period. Based on an analysis of the options available for ZIOP expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.34-$4.60 at expiration. In this scenario, the average linear return for the trade would be 37.16%.
Big 7.40% Change: After closing the last trading session at $3.11, ZIOPHARM ONCOLOGY opened today at $3.09 and has reached a high of $3.38.
Trade approach: A movement as big as 7.40% is a significantly bullish indicator, so this trade is designed to be profitable if ZIOP maintains its current direction and does not revert back to pricing on the bearish side of $3.34 on 17-Jul-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 ZIOPHARM ONCOLOGY closes at or above $3.20 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 55.35% 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.