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Quantchabot has detected a promising Long Risk Reversal trade opportunity for GOODRX HOLDINGS INC. CLASS A COMMON STOCK (GDRX) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GDRX was recently trading at $40.85 and has an implied volatility of 89.49% for this period. Based on an analysis of the options available for GDRX expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $40.86-$58.07 at expiration. In this scenario, the average linear return for the trade would be 105.86%.
Big 7.50% Change: After closing the last trading session at $38.00, GOODRX HOLDINGS INC. CLASS A COMMON STOCK opened today at $37.99 and has reached a high of $41.17.
Trade approach: A movement as big as 7.50% is a significantly bullish indicator, so this trade is designed to be profitable if GDRX maintains its current direction and does not revert back to pricing on the bearish side of $40.85 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 GOODRX HOLDINGS INC. CLASS A COMMON STOCK closes at or above $39.20 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 54.69% 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.