Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for THE MICHAELS COMPANIES INC. C (MIK) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. MIK was recently trading at $9.63 and has an implied volatility of 88.73% for this period. Based on an analysis of the options available for MIK expiring on 20-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.95-$9.63 at expiration. In this scenario, the average linear return for the trade would be 38.41%. Big -7.93% Change: After closing the last trading session at $10.46, THE MICHAELS COMPANIES INC. C opened today at $9.89 and has reached a low of $9.43. Trade approach: A movement as big as -7.93% is a significantly bearish indicator, so this trade is designed to be profitable if MIK maintains its current direction and does not revert back to pricing on the bullish side of $9.63 on 20-Nov-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit. Upside potential: Using this bearish strategy, the trade would be profitable if THE MICHAELS COMPANIES INC. C closes at or below $10.70 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 62.65% 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.