Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for DENNY’S (DENN) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. DENN was recently trading at $11.78 and has an implied volatility of 78.48% for this period. Based on an analysis of the options available for DENN expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $11.78-$15.71 at expiration. In this scenario, the average linear return for the trade would be 26.83%. Big 7.14% Change: After closing the last trading session at $10.99, DENNY’S opened today at $11.12 and has reached a high of $11.88. Trade approach: A movement as big as 7.14% is a significantly bullish indicator, so this trade is designed to be profitable if DENN maintains its current direction and does not revert back to pricing on the bearish side of $11.78 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 bullish strategy, the trade would be profitable if DENNY’S closes at or above $11.70 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 50.91% 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.