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Quantchabot has detected a promising Long Risk Reversal trade opportunity for XILINX (XLNX) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
XLNX was recently trading at $205.16 and has an implied volatility of 72.97% for this period. Based on an analysis of the options available for XLNX expiring on 21-Jan-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $205.20-$284.56 at expiration. In this scenario, the average linear return for the trade would be 71.51%.
52 week high: XILINX recently reached a new 52-week high at $213.27. XLNX had traded in the range $111.84-$201.00 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if XLNX maintains its current direction and does not revert back to pricing on the bearish side of $205.16 on 21-Jan-2022. 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 XILINX closes at or above $205.05 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.09% 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.