Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for CARNIVAL (CCL) for the 11-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CCL was recently trading at $17.69 and has an implied volatility of 86.28% for this period. Based on an analysis of the options available for CCL expiring on 11-Dec-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $13.74-$17.69 at expiration. In this scenario, the average linear return for the trade would be 54.05%. Big -8.10% Change: After closing the last trading session at $19.25, CARNIVAL opened today at $18.54 and has reached a low of $17.60. Trade approach: A movement as big as -8.10% is a significantly bearish indicator, so this trade is designed to be profitable if CCL maintains its current direction and does not revert back to pricing on the bullish side of $17.69 on 11-Dec-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 CARNIVAL closes at or below $18.00 on 11-Dec-2020. Based on our risk-neutral analysis, there is a 52.72% 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.