Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for XPO LOGISTICS (XPO) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. XPO was recently trading at $73.20 and has an implied volatility of 53.92% for this period. Based on an analysis of the options available for XPO expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $73.22-$90.84 at expiration. In this scenario, the average linear return for the trade would be 52.13%. Big 7.13% Change: After closing the last trading session at $68.33, XPO LOGISTICS opened today at $69.83 and has reached a high of $73.40. Trade approach: A movement as big as 7.13% is a significantly bullish indicator, so this trade is designed to be profitable if XPO maintains its current direction and does not revert back to pricing on the bearish side of $73.20 on 17-Jul-2020. 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 XPO LOGISTICS closes at or above $72.20 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.59% 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.