Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for KOHL’S (KSS) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. KSS was recently trading at $18.05 and has an implied volatility of 80.31% for this period. Based on an analysis of the options available for KSS expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $18.06-$24.82 at expiration. In this scenario, the average linear return for the trade would be 80.84%. Big 8.11% Change: After closing the last trading session at $16.70, KOHL’S opened today at $16.58 and has reached a high of $18.09. Trade approach: A movement as big as 8.11% is a significantly bullish indicator, so this trade is designed to be profitable if KSS maintains its current direction and does not revert back to pricing on the bearish side of $18.05 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 KOHL’S closes at or above $17.65 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.88% 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.