Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for FUTU HOLDINGS LTD ADS (FUTU) for the 12-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. FUTU was recently trading at $72.50 and has an implied volatility of 86.39% for this period. Based on an analysis of the options available for FUTU expiring on 12-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $72.50-$89.79 at expiration. In this scenario, the average linear return for the trade would be 46.53%. Big 8.27% Change: After closing the last trading session at $66.96, FUTU HOLDINGS LTD ADS opened today at $66.12 and has reached a high of $73.88. Trade approach: A movement as big as 8.27% is a significantly bullish indicator, so this trade is designed to be profitable if FUTU maintains its current direction and does not revert back to pricing on the bearish side of $72.50 on 12-Nov-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 FUTU HOLDINGS LTD ADS closes at or above $70.85 on 12-Nov-2021. Based on our risk-neutral analysis, there is a 54.30% 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.