Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for 360 DIGITECH INC (QFIN) for the 20-Aug-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. QFIN was recently trading at $22.12 and has an implied volatility of 106.58% for this period. Based on an analysis of the options available for QFIN expiring on 20-Aug-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.99-$22.12 at expiration. In this scenario, the average linear return for the trade would be 62.85%. Big -16.90% Change: After closing the last trading session at $26.62, 360 DIGITECH INC opened today at $25.31 and has reached a low of $21.75. Trade approach: A movement as big as -16.90% is a significantly bearish indicator, so this trade is designed to be profitable if QFIN maintains its current direction and does not revert back to pricing on the bullish side of $22.12 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 360 DIGITECH INC closes at or below $22.55 on 20-Aug-2021. Based on our risk-neutral analysis, there is a 52.89% 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.