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Quantchabot has detected a promising Long Risk Reversal trade opportunity for RINGCENTRAL INC. (RNG) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RNG was recently trading at $287.61 and has an implied volatility of 52.14% for this period. Based on an analysis of the options available for RNG expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $287.66-$362.83 at expiration. In this scenario, the average linear return for the trade would be 54.60%.

Big 23.10% Change: After closing the last trading session at $233.64, RINGCENTRAL INC. opened today at $300.00 and has reached a high of $315.00.

Trade approach: A movement as big as 23.10% is a significantly bullish indicator, so this trade is designed to be profitable if RNG maintains its current direction and does not revert back to pricing on the bearish side of $287.61 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 bullish strategy, the trade would be profitable if RINGCENTRAL INC. closes at or above $285.00 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 51.60% 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.