Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for NIU TECHNOLOGIES AMERICAN DEPOSITARY SHARES (NIU) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. NIU was recently trading at $28.52 and has an implied volatility of 82.53% for this period. Based on an analysis of the options available for NIU expiring on 20-Nov-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $22.57-$28.52 at expiration. In this scenario, the average linear return for the trade would be 47.69%. Big -7.16% Change: After closing the last trading session at $30.72, NIU TECHNOLOGIES AMERICAN DEPOSITARY SHARES opened today at $30.25 and has reached a low of $28.36. Trade approach: A movement as big as -7.16% is a significantly bearish indicator, so this trade is designed to be profitable if NIU maintains its current direction and does not revert back to pricing on the bullish side of $28.52 on 20-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 bearish strategy, the trade would be profitable if NIU TECHNOLOGIES AMERICAN DEPOSITARY SHARES closes at or below $29.00 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 52.82% 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.