Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for 21VIANET GROUP (VNET) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. VNET was recently trading at $15.31 and has an implied volatility of 57.16% for this period. Based on an analysis of the options available for VNET expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.17-$15.32 at expiration. In this scenario, the average linear return for the trade would be 49.87%. Big -9.11% Change: After closing the last trading session at $16.85, 21VIANET GROUP opened today at $16.27 and has reached a low of $14.73. Trade approach: A movement as big as -9.11% is a significantly bearish indicator, so this trade is designed to be profitable if VNET maintains its current direction and does not revert back to pricing on the bullish side of $15.31 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 bearish strategy, the trade would be profitable if 21VIANET GROUP closes at or below $15.90 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 56.42% 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.