52-Week High Alert: Trading today’s movement in Q2 HOLDINGS INC $QTWO

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for Q2 HOLDINGS INC (QTWO) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

QTWO was recently trading at $110.09 and has an implied volatility of 41.87% for this period. Based on an analysis of the options available for QTWO expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $110.12-$129.98 at expiration. In this scenario, the average linear return for the trade would be 17.79%.

52 week high: Q2 HOLDINGS INC recently reached a new 52-week high at $111.57. QTWO had traded in the range $47.17-$109.27 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 QTWO maintains its current direction and does not revert back to pricing on the bearish side of $110.09 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 Q2 HOLDINGS INC closes at or above $109.90 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.47% 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.