Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for RLX TECHNOLOGY INC (RLX) for the 20-Aug-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. RLX was recently trading at $6.24 and has an implied volatility of 99.84% for this period. Based on an analysis of the options available for RLX expiring on 20-Aug-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $4.65-$6.24 at expiration. In this scenario, the average linear return for the trade would be 31.96%. 52 week low: RLX TECHNOLOGY INC recently reached a new 52-week low at $6.20. RLX had traded in the range $6.40-$35.00 over the past year. Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if RLX maintains its current direction and does not revert back to pricing on the bullish side of $6.24 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 bearish strategy, the trade would be profitable if RLX TECHNOLOGY INC closes at or below $6.43 on 20-Aug-2021. Based on our risk-neutral analysis, there is a 54.18% 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.