Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for CIMAREX ENERGY (XEC) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. XEC was recently trading at $37.09 and has an implied volatility of 61.10% for this period. Based on an analysis of the options available for XEC expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $37.10-$46.84 at expiration. In this scenario, the average linear return for the trade would be 60.27%. Big 7.44% Change: After closing the last trading session at $34.52, CIMAREX ENERGY opened today at $35.28 and has reached a high of $37.25. Trade approach: A movement as big as 7.44% is a significantly bullish indicator, so this trade is designed to be profitable if XEC maintains its current direction and does not revert back to pricing on the bearish side of $37.09 on 15-Jan-2021. 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 CIMAREX ENERGY closes at or above $36.55 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.54% 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.