Big Gainer Alert: Trading today’s 8.9% move in LION ELECTRIC CO $LEV

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for LION ELECTRIC CO (LEV) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LEV was recently trading at $12.69 and has an implied volatility of 60.97% for this period. Based on an analysis of the options available for LEV expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.69-$15.17 at expiration. In this scenario, the average linear return for the trade would be 48.80%.

Big 8.93% Change: After closing the last trading session at $11.65, LION ELECTRIC CO opened today at $11.94 and has reached a high of $12.73.

Trade approach: A movement as big as 8.93% is a significantly bullish indicator, so this trade is designed to be profitable if LEV maintains its current direction and does not revert back to pricing on the bearish side of $12.69 on 15-Oct-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 LION ELECTRIC CO closes at or above $12.50 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 53.38% 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.