Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for CREE (CREE) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CREE was recently trading at $61.25 and has an implied volatility of 52.64% for this period. Based on an analysis of the options available for CREE expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $48.01-$61.27 at expiration. In this scenario, the average linear return for the trade would be 58.81%. Big -7.51% Change: After closing the last trading session at $66.22, CREE opened today at $64.04 and has reached a low of $61.25. Trade approach: A movement as big as -7.51% is a significantly bearish indicator, so this trade is designed to be profitable if CREE maintains its current direction and does not revert back to pricing on the bullish side of $61.25 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 bearish strategy, the trade would be profitable if CREE closes at or below $62.25 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.60% 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.