Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Long Risk Reversal trade opportunity for RED ROBIN GOURMET BURGERS (RRGB) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RRGB was recently trading at $14.12 and has an implied volatility of 115.50% for this period. Based on an analysis of the options available for RRGB expiring on 19-Jun-2020, there is a 34.15% likelihood that the underlying will close within the analyzed range of $14.12-$19.46 at expiration. In this scenario, the average linear return for the trade would be 74.82%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, RED ROBIN GOURMET BURGERS was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.
Trade approach: The recent sentiment change in RRGB on StockTwits appears to be significantly positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bullish strategy, the trade would be profitable if RED ROBIN GOURMET BURGERS closed at or above $13.90 on 19-Jun-2020. Based on our analysis, there is a 51.97% 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.