Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for QUANTUMSCAPE CORP (QS) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. QS was recently trading at $36.64 and has an implied volatility of 95.94% for this period. Based on an analysis of the options available for QS expiring on 21-Jan-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $24.34-$36.65 at expiration. In this scenario, the average linear return for the trade would be 109.28%. Big -9.71% Change: After closing the last trading session at $40.58, QUANTUMSCAPE CORP opened today at $38.40 and has reached a low of $36.00. Trade approach: A movement as big as -9.71% is a significantly bearish indicator, so this trade is designed to be profitable if QS maintains its current direction and does not revert back to pricing on the bullish side of $36.64 on 21-Jan-2022. 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 QUANTUMSCAPE CORP closes at or below $44.50 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 68.25% 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.