Quantchabot has detected a new Long Risk Reversal trade opportunity for COTY INC (COTY) for the 15-Aug-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
COTY was recently trading at $4.98 and has an implied volatility of 42.74% for this period. Based on an analysis of the options available for COTY expiring on 15-Aug-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $5.01-$5.83 at expiration. In this scenario, the average linear return for the trade would be 13.68%.
Big 7.12% Change: After closing the last trading session at $4.65, COTY INC opened today at $4.64 and has reached a high of $4.99.
Trade approach: A movement as big as 7.12% is a significantly bullish indicator, so this trade is designed to be profitable if COTY maintains its current direction and does not revert back to pricing on the bearish side of $4.98 on 15-Aug-2025. 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 COTY INC closes at or above $4.85 on 15-Aug-2025. Based on our risk-neutral analysis, there is a 58.42% 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.
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