Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for CHEGG INC (CHGG) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CHGG was recently trading at $80.86 and has an implied volatility of 55.62% for this period. Based on an analysis of the options available for CHGG expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $63.69-$80.88 at expiration. In this scenario, the average linear return for the trade would be 66.66%. Big -7.04% Change: After closing the last trading session at $86.98, CHEGG INC opened today at $87.90 and has reached a low of $80.40. Trade approach: A movement as big as -7.04% is a significantly bearish indicator, so this trade is designed to be profitable if CHGG maintains its current direction and does not revert back to pricing on the bullish side of $80.86 on 16-Oct-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 CHEGG INC closes at or below $84.55 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 57.36% 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.