Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for PLAINS ALL AMERICAN (PAA) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. PAA was recently trading at $8.22 and has an implied volatility of 60.88% for this period. Based on an analysis of the options available for PAA expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $8.22-$10.53 at expiration. In this scenario, the average linear return for the trade would be 55.19%. Big 7.31% Change: After closing the last trading session at $7.66, PLAINS ALL AMERICAN opened today at $7.95 and has reached a high of $8.23. Trade approach: A movement as big as 7.31% is a significantly bullish indicator, so this trade is designed to be profitable if PAA maintains its current direction and does not revert back to pricing on the bearish side of $8.22 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 PLAINS ALL AMERICAN closes at or above $8.20 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.43% 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.