Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for NIKOLA CORP (NKLA) for the 6-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. NKLA was recently trading at $22.21 and has an implied volatility of 130.39% for this period. Based on an analysis of the options available for NKLA expiring on 6-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $22.22-$29.28 at expiration. In this scenario, the average linear return for the trade would be 73.86%. Big 7.22% Change: After closing the last trading session at $20.72, NIKOLA CORP opened today at $22.44 and has reached a high of $22.79. Trade approach: A movement as big as 7.22% is a significantly bullish indicator, so this trade is designed to be profitable if NKLA maintains its current direction and does not revert back to pricing on the bearish side of $22.21 on 6-Nov-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 NIKOLA CORP closes at or above $21.85 on 6-Nov-2020. Based on our risk-neutral analysis, there is a 52.40% 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.