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Quantchabot has detected a promising Short Risk Reversal trade opportunity for FASTLY INC (FSLY) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FSLY was recently trading at $83.10 and has an implied volatility of 73.35% for this period. Based on an analysis of the options available for FSLY expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $62.14-$83.11 at expiration. In this scenario, the average linear return for the trade would be 56.90%.

Big -12.39% Change: After closing the last trading session at $94.85, FASTLY INC opened today at $86.70 and has reached a low of $83.00.

Trade approach: A movement as big as -12.39% is a significantly bearish indicator, so this trade is designed to be profitable if FSLY maintains its current direction and does not revert back to pricing on the bullish side of $83.10 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 FASTLY INC closes at or below $84.50 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 52.27% 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.