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Quantchabot has detected a promising Long Risk Reversal trade opportunity for CRISPR THERAPEUTICS AG COMMON SHARES (CRSP) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CRSP was recently trading at $118.28 and has an implied volatility of 71.51% for this period. Based on an analysis of the options available for CRSP expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $118.30-$153.87 at expiration. In this scenario, the average linear return for the trade would be 54.05%.

Big 7.52% Change: After closing the last trading session at $110.00, CRISPR THERAPEUTICS AG COMMON SHARES opened today at $111.08 and has reached a high of $119.98.

Trade approach: A movement as big as 7.52% is a significantly bullish indicator, so this trade is designed to be profitable if CRSP maintains its current direction and does not revert back to pricing on the bearish side of $118.28 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 CRISPR THERAPEUTICS AG COMMON SHARES closes at or above $118.00 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.38% 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.