Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for STONECO LTD. CLASS A COMMON SHARES (STNE) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. STNE was recently trading at $22.24 and has an implied volatility of 87.81% for this period. Based on an analysis of the options available for STNE expiring on 17-Apr-2020, there is a 34.21% likelihood that the underlying will close within the analyzed range of $22.24-$25.88 at expiration. In this scenario, the average linear return for the trade would be 29.30%. Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, STONECO LTD. CLASS A COMMON SHARES was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying. Trade approach: The recent sentiment change in STNE on StockTwits appears to be moderately positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading. Upside potential: Using this bullish strategy, the trade would be profitable if STONECO LTD. CLASS A COMMON SHARES closed at or above $21.55 on 17-Apr-2020. Based on our analysis, there is a 58.32% 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.