Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for DCP MIDSTREAM LP (DCP) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. DCP was recently trading at $16.00 and has an implied volatility of 59.87% for this period. Based on an analysis of the options available for DCP expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.00-$20.42 at expiration. In this scenario, the average linear return for the trade would be 48.88%. Big 7.67% Change: After closing the last trading session at $14.86, DCP MIDSTREAM LP opened today at $15.27 and has reached a high of $16.11. Trade approach: A movement as big as 7.67% is a significantly bullish indicator, so this trade is designed to be profitable if DCP maintains its current direction and does not revert back to pricing on the bearish side of $16.00 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 DCP MIDSTREAM LP closes at or above $15.45 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 55.75% 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.