Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for CANAAN INC. ADR OVERVIEW (CAN) for the 20-Aug-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CAN was recently trading at $7.76 and has an implied volatility of 143.54% for this period. Based on an analysis of the options available for CAN expiring on 20-Aug-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.76-$10.71 at expiration. In this scenario, the average linear return for the trade would be 88.00%. Big 12.74% Change: After closing the last trading session at $6.88, CANAAN INC. ADR OVERVIEW opened today at $6.99 and has reached a high of $7.77. Trade approach: A movement as big as 12.74% is a significantly bullish indicator, so this trade is designed to be profitable if CAN maintains its current direction and does not revert back to pricing on the bearish side of $7.76 on 20-Aug-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 CANAAN INC. ADR OVERVIEW closes at or above $7.53 on 20-Aug-2021. Based on our risk-neutral analysis, there is a 53.67% 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.