Quantchabot has detected a new Long Risk Reversal trade opportunity for POWER INTEGRATIONS (POWI) for the 18-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
POWI was recently trading at $54.78 and has an implied volatility of 49.93% for this period. Based on an analysis of the options available for POWI expiring on 18-Jul-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $55.08-$65.58 at expiration. In this scenario, the average linear return for the trade would be 13.51%.
Big 7.58% Change: After closing the last trading session at $50.92, POWER INTEGRATIONS opened today at $51.55 and has reached a high of $54.87.
Trade approach: A movement as big as 7.58% is a significantly bullish indicator, so this trade is designed to be profitable if POWI maintains its current direction and does not revert back to pricing on the bearish side of $54.78 on 18-Jul-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 POWER INTEGRATIONS closes at or above $54.45 on 18-Jul-2025. Based on our risk-neutral analysis, there is a 52.62% 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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