Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for PETROLEO BRASILEIRO SA (PBR) for the 24-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. PBR was recently trading at $7.78 and has an implied volatility of 99.69% for this period. Based on an analysis of the options available for PBR expiring on 24-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.79-$10.99 at expiration. In this scenario, the average linear return for the trade would be 65.47%. Big 7.16% Change: After closing the last trading session at $7.26, PETROLEO BRASILEIRO SA opened today at $8.50 and has reached a high of $8.57. Trade approach: A movement as big as 7.16% is a significantly bullish indicator, so this trade is designed to be profitable if PBR maintains its current direction and does not revert back to pricing on the bearish side of $7.78 on 24-Apr-2020. 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 PETROLEO BRASILEIRO SA closes at or above $7.24 on 24-Apr-2020. Based on our risk-neutral analysis, there is a 58.40% 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.