Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for SMILEDIRECTCLUB INC. (SDC) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. SDC was recently trading at $7.27 and has an implied volatility of 129.17% for this period. Based on an analysis of the options available for SDC expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.27-$12.24 at expiration. In this scenario, the average linear return for the trade would be 173.66%. Big 7.54% Change: After closing the last trading session at $6.76, SMILEDIRECTCLUB INC. opened today at $6.80 and has reached a high of $7.35. Trade approach: A movement as big as 7.54% is a significantly bullish indicator, so this trade is designed to be profitable if SDC maintains its current direction and does not revert back to pricing on the bearish side of $7.27 on 17-Jul-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 SMILEDIRECTCLUB INC. closes at or above $6.45 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 59.11% 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.