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Quantchabot has detected a promising Long Risk Reversal trade opportunity for TASKUS INC. CLASS A COMMON STOCK (TASK) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TASK was recently trading at $61.40 and has an implied volatility of 100.96% for this period. Based on an analysis of the options available for TASK expiring on 19-Nov-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $61.41-$84.81 at expiration. In this scenario, the average linear return for the trade would be 92.09%.
Big 8.77% Change: After closing the last trading session at $56.45, TASKUS INC. CLASS A COMMON STOCK opened today at $57.47 and has reached a high of $61.97.
Trade approach: A movement as big as 8.77% is a significantly bullish indicator, so this trade is designed to be profitable if TASK maintains its current direction and does not revert back to pricing on the bearish side of $61.40 on 19-Nov-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 TASKUS INC. CLASS A COMMON STOCK closes at or above $59.40 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 54.10% 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.