Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Long Risk Reversal trade opportunity for GSX TECHEDU INC (GSX) for the 30-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GSX was recently trading at $30.92 and has an implied volatility of 166.50% for this period. Based on an analysis of the options available for GSX expiring on 30-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $30.92-$47.56 at expiration. In this scenario, the average linear return for the trade would be 116.23%.
Big 7.51% Change: After closing the last trading session at $28.76, GSX TECHEDU INC opened today at $28.88 and has reached a high of $31.11.
Trade approach: A movement as big as 7.51% is a significantly bullish indicator, so this trade is designed to be profitable if GSX maintains its current direction and does not revert back to pricing on the bearish side of $30.92 on 30-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 bullish strategy, the trade would be profitable if GSX TECHEDU INC closes at or above $30.14 on 30-Apr-2021. Based on our risk-neutral analysis, there is a 52.37% 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.