Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for DISCOVER FINANCIAL (DFS) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. DFS was recently trading at $65.65 and has an implied volatility of 49.64% for this period. Based on an analysis of the options available for DFS expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $65.23-$82.93 at expiration. In this scenario, the average linear return for the trade would be 61.23%. Big 8.33% Change: After closing the last trading session at $60.60, DISCOVER FINANCIAL opened today at $65.36 and has reached a high of $67.12. Trade approach: A movement as big as 8.33% is a significantly bullish indicator, so this trade is designed to be profitable if DFS maintains its current direction and does not revert back to pricing on the bearish side of $65.65 on 15-Jan-2021. 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 DISCOVER FINANCIAL closes at or above $64.45 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.00% 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.