Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for MGP INGREDIENTS (MGPI) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. MGPI was recently trading at $39.06 and has an implied volatility of 42.12% for this period. Based on an analysis of the options available for MGPI expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $34.25-$39.12 at expiration. In this scenario, the average linear return for the trade would be 28.55%. Big -25.99% Change: After closing the last trading session at $52.78, MGP INGREDIENTS opened today at $44.95 and has reached a low of $36.14. Trade approach: A movement as big as -25.99% is a significantly bearish indicator, so this trade is designed to be profitable if MGPI maintains its current direction and does not revert back to pricing on the bullish side of $39.06 on 21-Feb-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 MGP INGREDIENTS closes at or below $39.20 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 50.58% 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.