Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for ENERGY TRANSFER LP (ET) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. ET was recently trading at $6.90 and has an implied volatility of 62.11% for this period. Based on an analysis of the options available for ET expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $5.31-$6.90 at expiration. In this scenario, the average linear return for the trade would be 56.11%. Big -8.15% Change: After closing the last trading session at $7.51, ENERGY TRANSFER LP opened today at $7.51 and has reached a low of $6.88. Trade approach: A movement as big as -8.15% is a significantly bearish indicator, so this trade is designed to be profitable if ET maintains its current direction and does not revert back to pricing on the bullish side of $6.90 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 bearish strategy, the trade would be profitable if ENERGY TRANSFER LP closes at or below $7.11 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 54.54% 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.