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52-Week High Alert: Trading today’s movement in STITCH FIX INC. CLASS A COMMON STOCK

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for STITCH FIX INC. CLASS A COMMON STOCK (SFIX) for the 4-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SFIX was recently trading at $36.26 and has an implied volatility of 72.68% for this period. Based on an analysis of the options available for SFIX expiring on 4-Dec-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $36.27-$45.91 at expiration. In this scenario, the average linear return for the trade would be 43.92%.

52 week high: STITCH FIX INC. CLASS A COMMON STOCK recently reached a new 52-week high at $36.65. SFIX had traded in the range $10.90-$36.29 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if SFIX maintains its current direction and does not revert back to pricing on the bearish side of $36.26 on 4-Dec-2020. 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 STITCH FIX INC. CLASS A COMMON STOCK closes at or above $35.94 on 4-Dec-2020. Based on our risk-neutral analysis, there is a 51.53% 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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