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Quantchabot has detected a promising Bull Put Spread trade opportunity for RIOT BLOCKCHAIN INC. COMMON STOCK (RIOT) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RIOT was recently trading at $56.28 and has an implied volatility of 124.97% for this period. Based on an analysis of the options available for RIOT expiring on 7-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $56.29-$81.63 at expiration. In this scenario, the average linear return for the trade would be 106.96%.
Big 8.17% Change: After closing the last trading session at $52.03, RIOT BLOCKCHAIN INC. COMMON STOCK opened today at $52.11 and has reached a high of $56.72.
Trade approach: A movement as big as 8.17% is a significantly bullish indicator, so this trade is designed to be profitable if RIOT maintains its current direction and does not revert back to pricing on the bearish side of $56.28 on 7-May-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 RIOT BLOCKCHAIN INC. COMMON STOCK closes at or above $56.00 on 7-May-2021. Based on our risk-neutral analysis, there is a 50.55% 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.