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Big Loser Alert: Trading today’s -10.1% move in RIOT BLOCKCHAIN INC. COMMON STOCK

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Quantchabot has detected a promising Covered Put trade opportunity for RIOT BLOCKCHAIN INC. COMMON STOCK (RIOT) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RIOT was recently trading at $36.77 and has an implied volatility of 146.94% for this period. Based on an analysis of the options available for RIOT expiring on 7-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $26.71-$36.77 at expiration. In this scenario, the average linear return for the trade would be 178.72%.

Big -10.10% Change: After closing the last trading session at $40.90, RIOT BLOCKCHAIN INC. COMMON STOCK opened today at $40.54 and has reached a low of $35.71.

Trade approach: A movement as big as -10.10% is a significantly bearish indicator, so this trade is designed to be profitable if RIOT maintains its current direction and does not revert back to pricing on the bullish side of $36.77 on 7-May-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 RIOT BLOCKCHAIN INC. COMMON STOCK closes at or below $54.92 on 7-May-2021. Based on our risk-neutral analysis, there is a 89.51% 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.

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