Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Long Risk Reversal trade opportunity for DREAM FINDERS HOMES INC. CLASS A COMMON STOCK (DFH) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DFH was recently trading at $17.39 and has an implied volatility of 60.25% for this period. Based on an analysis of the options available for DFH expiring on 19-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $17.39-$21.03 at expiration. In this scenario, the average linear return for the trade would be 40.98%.
Big 7.35% Change: After closing the last trading session at $16.20, DREAM FINDERS HOMES INC. CLASS A COMMON STOCK opened today at $16.03 and has reached a high of $17.44.
Trade approach: A movement as big as 7.35% is a significantly bullish indicator, so this trade is designed to be profitable if DFH maintains its current direction and does not revert back to pricing on the bearish side of $17.39 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 DREAM FINDERS HOMES INC. CLASS A COMMON STOCK closes at or above $17.30 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 51.11% 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.