Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Short Risk Reversal trade opportunity for ROBLOX CORP (RBLX) for the 11-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RBLX was recently trading at $61.92 and has an implied volatility of 108.71% for this period. Based on an analysis of the options available for RBLX expiring on 11-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $48.55-$61.92 at expiration. In this scenario, the average linear return for the trade would be 62.21%.

Big -10.17% Change: After closing the last trading session at $68.93, ROBLOX CORP opened today at $65.41 and has reached a low of $61.92.

Trade approach: A movement as big as -10.17% is a significantly bearish indicator, so this trade is designed to be profitable if RBLX maintains its current direction and does not revert back to pricing on the bullish side of $61.92 on 11-Feb-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 ROBLOX CORP closes at or below $63.36 on 11-Feb-2022. Based on our risk-neutral analysis, there is a 53.76% 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.