Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for CONTINENTAL RESOURCES (CLR) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CLR was recently trading at $13.46 and has an implied volatility of 93.82% for this period. Based on an analysis of the options available for CLR expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $9.23-$13.47 at expiration. In this scenario, the average linear return for the trade would be 75.83%. Big -8.28% Change: After closing the last trading session at $14.68, CONTINENTAL RESOURCES opened today at $14.90 and has reached a low of $13.37. Trade approach: A movement as big as -8.28% is a significantly bearish indicator, so this trade is designed to be profitable if CLR maintains its current direction and does not revert back to pricing on the bullish side of $13.46 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 bearish strategy, the trade would be profitable if CONTINENTAL RESOURCES closes at or below $13.70 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 51.80% 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.