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Quantchabot has detected a promising Long Risk Reversal trade opportunity for XOMETRY INC. (XMTR) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
XMTR was recently trading at $62.47 and has an implied volatility of 86.00% for this period. Based on an analysis of the options available for XMTR expiring on 19-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $62.48-$81.97 at expiration. In this scenario, the average linear return for the trade would be 53.61%.
Big 7.12% Change: After closing the last trading session at $58.32, XOMETRY INC. opened today at $59.22 and has reached a high of $63.63.
Trade approach: A movement as big as 7.12% is a significantly bullish indicator, so this trade is designed to be profitable if XMTR maintains its current direction and does not revert back to pricing on the bearish side of $62.47 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 XOMETRY INC. closes at or above $62.25 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 50.53% 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.