Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for ALLAKOS INC. COMMON STOCK (ALLK) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. ALLK was recently trading at $119.50 and has an implied volatility of 86.86% for this period. Based on an analysis of the options available for ALLK expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $88.02-$119.52 at expiration. In this scenario, the average linear return for the trade would be 49.69%. Big -10.67% Change: After closing the last trading session at $133.77, ALLAKOS INC. COMMON STOCK opened today at $131.60 and has reached a low of $116.00. Trade approach: A movement as big as -10.67% is a significantly bearish indicator, so this trade is designed to be profitable if ALLK maintains its current direction and does not revert back to pricing on the bullish side of $119.50 on 19-Feb-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 ALLAKOS INC. COMMON STOCK closes at or below $120.10 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 50.63% 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.