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Quantchabot has detected a promising Long Risk Reversal trade opportunity for FUTURE FINTECH GROUP INC. COMMON STOCK (FTFT) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FTFT was recently trading at $3.71 and has an implied volatility of 154.54% for this period. Based on an analysis of the options available for FTFT expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.71-$6.69 at expiration. In this scenario, the average linear return for the trade would be 111.01%.
Big 9.29% Change: After closing the last trading session at $3.39, FUTURE FINTECH GROUP INC. COMMON STOCK opened today at $3.60 and has reached a high of $3.73.
Trade approach: A movement as big as 9.29% is a significantly bullish indicator, so this trade is designed to be profitable if FTFT maintains its current direction and does not revert back to pricing on the bearish side of $3.71 on 18-Jun-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 FUTURE FINTECH GROUP INC. COMMON STOCK closes at or above $3.50 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 53.85% 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.