Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for KIRKLAND’S (KIRK) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. KIRK was recently trading at $10.96 and has an implied volatility of 120.36% for this period. Based on an analysis of the options available for KIRK expiring on 20-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.98-$10.96 at expiration. In this scenario, the average linear return for the trade would be 54.77%. Big -7.12% Change: After closing the last trading session at $11.80, KIRKLAND’S opened today at $11.74 and has reached a low of $10.84. Trade approach: A movement as big as -7.12% is a significantly bearish indicator, so this trade is designed to be profitable if KIRK maintains its current direction and does not revert back to pricing on the bullish side of $10.96 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 KIRKLAND’S closes at or below $11.50 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 56.01% 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.