Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for BARNES & NOBLE EDUCATION INC (BNED) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. BNED was recently trading at $2.57 and has an implied volatility of 171.45% for this period. Based on an analysis of the options available for BNED expiring on 21-Aug-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $2.57-$4.38 at expiration. In this scenario, the average linear return for the trade would be 45.96%. Big 16.82% Change: After closing the last trading session at $2.20, BARNES & NOBLE EDUCATION INC opened today at $2.68 and has reached a high of $2.83. Trade approach: A movement as big as 16.82% is a significantly bullish indicator, so this trade is designed to be profitable if BNED maintains its current direction and does not revert back to pricing on the bearish side of $2.57 on 21-Aug-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 BARNES & NOBLE EDUCATION INC closes at or above $2.25 on 21-Aug-2020. Based on our risk-neutral analysis, there is a 59.87% 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.