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Quantchabot has detected a promising Bull Put Spread trade opportunity for REVOLVE GROUP INC (RVLV) for the 14-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RVLV was recently trading at $48.27 and has an implied volatility of 83.39% for this period. Based on an analysis of the options available for RVLV expiring on 14-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $48.28-$63.26 at expiration. In this scenario, the average linear return for the trade would be 78.61%.
Big 10.26% Change: After closing the last trading session at $43.78, REVOLVE GROUP INC opened today at $43.67 and has reached a high of $48.47.
Trade approach: A movement as big as 10.26% is a significantly bullish indicator, so this trade is designed to be profitable if RVLV maintains its current direction and does not revert back to pricing on the bearish side of $48.27 on 14-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 REVOLVE GROUP INC closes at or above $47.50 on 14-May-2021. Based on our risk-neutral analysis, there is a 52.39% 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.