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Quantchabot has detected a promising Short Risk Reversal trade opportunity for UP FINTECH HOLDING LTD AMERICAN DEPOSITARY SHARE R (TIGR) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TIGR was recently trading at $8.15 and has an implied volatility of 110.65% for this period. Based on an analysis of the options available for TIGR expiring on 19-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $5.75-$8.16 at expiration. In this scenario, the average linear return for the trade would be 60.78%.
Big -21.44% Change: After closing the last trading session at $10.38, UP FINTECH HOLDING LTD AMERICAN DEPOSITARY SHARE R opened today at $8.93 and has reached a low of $8.08.
Trade approach: A movement as big as -21.44% is a significantly bearish indicator, so this trade is designed to be profitable if TIGR maintains its current direction and does not revert back to pricing on the bullish side of $8.15 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 bearish strategy, the trade would be profitable if UP FINTECH HOLDING LTD AMERICAN DEPOSITARY SHARE R closes at or below $8.70 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 57.33% 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.