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Quantchabot has detected a promising Short Risk Reversal trade opportunity for YASTEN HOLDING LTD (YSG) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
YSG was recently trading at $20.13 and has an implied volatility of 110.91% for this period. Based on an analysis of the options available for YSG expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $13.18-$20.13 at expiration. In this scenario, the average linear return for the trade would be 63.99%.
Big -7.32% Change: After closing the last trading session at $21.72, YASTEN HOLDING LTD opened today at $20.77 and has reached a low of $20.13.
Trade approach: A movement as big as -7.32% is a significantly bearish indicator, so this trade is designed to be profitable if YSG maintains its current direction and does not revert back to pricing on the bullish side of $20.13 on 16-Apr-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if YASTEN HOLDING LTD closes at or below $24.30 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 67.15% 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.