Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for BILIBILI INC. AMERICAN DEPOSITARY SHARES (BILI) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. BILI was recently trading at $55.73 and has an implied volatility of 83.97% for this period. Based on an analysis of the options available for BILI expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $40.94-$55.74 at expiration. In this scenario, the average linear return for the trade would be 76.94%. 52 week low: BILIBILI INC. AMERICAN DEPOSITARY SHARES recently reached a new 52-week low at $52.07. BILI had traded in the range $58.56-$157.66 over the past year. Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if BILI maintains its current direction and does not revert back to pricing on the bullish side of $55.73 on 21-Jan-2022. 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 BILIBILI INC. AMERICAN DEPOSITARY SHARES closes at or below $57.95 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 55.02% 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.