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Quantchabot has detected a promising Short Risk Reversal trade opportunity for KORNIT DIGITAL LTD. ORDINARY S (KRNT) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KRNT was recently trading at $100.17 and has an implied volatility of 51.00% for this period. Based on an analysis of the options available for KRNT expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $92.33-$100.17 at expiration. In this scenario, the average linear return for the trade would be 16.35%.
Big -7.27% Change: After closing the last trading session at $108.02, KORNIT DIGITAL LTD. ORDINARY S opened today at $109.06 and has reached a low of $100.00.
Trade approach: A movement as big as -7.27% is a significantly bearish indicator, so this trade is designed to be profitable if KRNT maintains its current direction and does not revert back to pricing on the bullish side of $100.17 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 KORNIT DIGITAL LTD. ORDINARY S closes at or below $100.30 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 50.62% 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.