Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for SOLAR WINDS CORP (SWI) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. SWI was recently trading at $19.95 and has an implied volatility of 54.92% for this period. Based on an analysis of the options available for SWI expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.95-$19.96 at expiration. In this scenario, the average linear return for the trade would be 114.59%. Big -15.27% Change: After closing the last trading session at $23.55, SOLAR WINDS CORP opened today at $21.00 and has reached a low of $19.70. Trade approach: A movement as big as -15.27% is a significantly bearish indicator, so this trade is designed to be profitable if SWI maintains its current direction and does not revert back to pricing on the bullish side of $19.95 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 SOLAR WINDS CORP closes at or below $23.55 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 84.44% 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.