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Quantchabot has detected a promising Bull Put Spread trade opportunity for B. RILEY FINANCIAL INC. COMMON STOCK (RILY) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RILY was recently trading at $69.70 and has an implied volatility of 68.42% for this period. Based on an analysis of the options available for RILY expiring on 16-Apr-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $69.70-$74.39 at expiration. In this scenario, the average linear return for the trade would be 36.17%.
Big 14.32% Change: After closing the last trading session at $60.97, B. RILEY FINANCIAL INC. COMMON STOCK opened today at $67.06 and has reached a high of $70.34.
Trade approach: A movement as big as 14.32% is a significantly bullish indicator, so this trade is designed to be profitable if RILY maintains its current direction and does not revert back to pricing on the bearish side of $69.70 on 16-Apr-2021. 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 B. RILEY FINANCIAL INC. COMMON STOCK closes at or above $69.65 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 50.45% 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.