Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for REATA PHARMACEUTICALS INC. CLASS A COMMON STOCK (RETA) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. RETA was recently trading at $122.04 and has an implied volatility of 83.03% for this period. Based on an analysis of the options available for RETA expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $95.33-$122.05 at expiration. In this scenario, the average linear return for the trade would be 25.82%. Big -8.11% Change: After closing the last trading session at $132.81, REATA PHARMACEUTICALS INC. CLASS A COMMON STOCK opened today at $132.26 and has reached a low of $122.04. Trade approach: A movement as big as -8.11% is a significantly bearish indicator, so this trade is designed to be profitable if RETA maintains its current direction and does not revert back to pricing on the bullish side of $122.04 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 bearish strategy, the trade would be profitable if REATA PHARMACEUTICALS INC. CLASS A COMMON STOCK closes at or below $123.60 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 52.03% 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.