Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for CINEMARK HOLDINGS (CNK) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CNK was recently trading at $12.99 and has an implied volatility of 95.93% for this period. Based on an analysis of the options available for CNK expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $13.00-$17.21 at expiration. In this scenario, the average linear return for the trade would be 73.85%. Big 7.30% Change: After closing the last trading session at $12.11, CINEMARK HOLDINGS opened today at $12.18 and has reached a high of $13.25. Trade approach: A movement as big as 7.30% is a significantly bullish indicator, so this trade is designed to be profitable if CNK maintains its current direction and does not revert back to pricing on the bearish side of $12.99 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 CINEMARK HOLDINGS closes at or above $12.40 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 56.63% 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.