Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Short Risk Reversal trade opportunity for RUSH STREET INTERACTIVE INC (RSI) for the 17-Dec-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RSI was recently trading at $18.48 and has an implied volatility of 73.46% for this period. Based on an analysis of the options available for RSI expiring on 17-Dec-2021, there is a 34.01% likelihood that the underlying will close within the analyzed range of $15.35-$18.47 at expiration. In this scenario, the average linear return for the trade would be 31.08%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, RUSH STREET INTERACTIVE INC was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.
Trade approach: The recent sentiment change in RSI on StockTwits appears to be moderately negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bearish strategy, the trade would be profitable if RUSH STREET INTERACTIVE INC closed at or below $18.90 on 17-Dec-2021. Based on our analysis, there is a 54.81% 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.