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Quantchabot has detected a promising Long Risk Reversal trade opportunity for PING IDENTITY HOLDING CORP (PING) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PING was recently trading at $21.82 and has an implied volatility of 61.80% for this period. Based on an analysis of the options available for PING expiring on 19-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $21.83-$29.79 at expiration. In this scenario, the average linear return for the trade would be 84.11%.
Big 7.91% Change: After closing the last trading session at $20.22, PING IDENTITY HOLDING CORP opened today at $20.39 and has reached a high of $21.83.
Trade approach: A movement as big as 7.91% is a significantly bullish indicator, so this trade is designed to be profitable if PING maintains its current direction and does not revert back to pricing on the bearish side of $21.82 on 19-Feb-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 PING IDENTITY HOLDING CORP closes at or above $21.45 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 52.27% 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.