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Quantchabot has detected a promising Long Risk Reversal trade opportunity for NORWEGIAN CRUISE LINE HOLDINGS (NCLH) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NCLH was recently trading at $21.80 and has an implied volatility of 79.97% for this period. Based on an analysis of the options available for NCLH expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $21.81-$30.18 at expiration. In this scenario, the average linear return for the trade would be 96.11%.
Big 8.70% Change: After closing the last trading session at $20.06, NORWEGIAN CRUISE LINE HOLDINGS opened today at $21.93 and has reached a high of $22.02.
Trade approach: A movement as big as 8.70% is a significantly bullish indicator, so this trade is designed to be profitable if NCLH maintains its current direction and does not revert back to pricing on the bearish side of $21.80 on 15-Jan-2021. 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 NORWEGIAN CRUISE LINE HOLDINGS closes at or above $20.86 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 55.45% 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.