Big Gainer Alert: Trading today’s 11.1% move in FOSSIL GROUP INC. COMMON STOC $FOSL

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

FOSL was recently trading at $11.86 and has an implied volatility of 79.71% for this period. Based on an analysis of the options available for FOSL expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $11.86-$16.27 at expiration. In this scenario, the average linear return for the trade would be 64.74%.

Big 11.10% Change: After closing the last trading session at $10.68, FOSSIL GROUP INC. COMMON STOC opened today at $10.65 and has reached a high of $12.04.

Trade approach: A movement as big as 11.10% is a significantly bullish indicator, so this trade is designed to be profitable if FOSL maintains its current direction and does not revert back to pricing on the bearish side of $11.86 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 FOSSIL GROUP INC. COMMON STOC closes at or above $11.60 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.83% 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.