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Quantchabot has detected a promising Long Risk Reversal trade opportunity for UP FINTECH HOLDING LTD AMERICAN DEPOSITARY SHARE R (TIGR) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TIGR was recently trading at $18.03 and has an implied volatility of 121.88% for this period. Based on an analysis of the options available for TIGR expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.03-$27.45 at expiration. In this scenario, the average linear return for the trade would be 104.55%.
Big 7.14% Change: After closing the last trading session at $16.83, UP FINTECH HOLDING LTD AMERICAN DEPOSITARY SHARE R opened today at $17.24 and has reached a high of $18.18.
Trade approach: A movement as big as 7.14% is a significantly bullish indicator, so this trade is designed to be profitable if TIGR maintains its current direction and does not revert back to pricing on the bearish side of $18.03 on 21-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 UP FINTECH HOLDING LTD AMERICAN DEPOSITARY SHARE R closes at or above $17.50 on 21-May-2021. Based on our risk-neutral analysis, there is a 52.85% 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.