Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for REVOLVE GROUP INC (RVLV) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. RVLV was recently trading at $19.96 and has an implied volatility of 66.00% for this period. Based on an analysis of the options available for RVLV expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $15.14-$19.97 at expiration. In this scenario, the average linear return for the trade would be 56.68%. Big -11.03% Change: After closing the last trading session at $22.44, REVOLVE GROUP INC opened today at $19.11 and has reached a low of $18.81. Trade approach: A movement as big as -11.03% is a significantly bearish indicator, so this trade is designed to be profitable if RVLV maintains its current direction and does not revert back to pricing on the bullish side of $19.96 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 bearish strategy, the trade would be profitable if REVOLVE GROUP INC closes at or below $20.60 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 54.46% 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.