Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for IQIYI INC. AMERICAN DEPOSITARY SHARES (IQ) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. IQ was recently trading at $16.11 and has an implied volatility of 151.19% for this period. Based on an analysis of the options available for IQ expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.49-$16.11 at expiration. In this scenario, the average linear return for the trade would be 40.56%. 52 week low: IQIYI INC. AMERICAN DEPOSITARY SHARES recently reached a new 52-week low at $14.51. IQ had traded in the range $15.12-$27.50 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 IQ maintains its current direction and does not revert back to pricing on the bullish side of $16.11 on 17-Apr-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 IQIYI INC. AMERICAN DEPOSITARY SHARES closes at or below $16.55 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 54.22% 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.