Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for DISCOVER FINANCIAL (DFS) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. DFS was recently trading at $48.46 and has an implied volatility of 60.99% for this period. Based on an analysis of the options available for DFS expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $48.47-$60.92 at expiration. In this scenario, the average linear return for the trade would be 58.13%. Big 9.94% Change: After closing the last trading session at $44.08, DISCOVER FINANCIAL opened today at $47.27 and has reached a high of $49.20. Trade approach: A movement as big as 9.94% is a significantly bullish indicator, so this trade is designed to be profitable if DFS maintains its current direction and does not revert back to pricing on the bearish side of $48.46 on 17-Jul-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 DISCOVER FINANCIAL closes at or above $47.80 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.43% 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.