Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for DENALI THERAPEUTICS INC. COMMON STOCK (DNLI) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. DNLI was recently trading at $73.26 and has an implied volatility of 70.75% for this period. Based on an analysis of the options available for DNLI expiring on 19-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $73.27-$93.48 at expiration. In this scenario, the average linear return for the trade would be 41.21%. Big 7.67% Change: After closing the last trading session at $68.04, DENALI THERAPEUTICS INC. COMMON STOCK opened today at $67.85 and has reached a high of $73.49. Trade approach: A movement as big as 7.67% is a significantly bullish indicator, so this trade is designed to be profitable if DNLI maintains its current direction and does not revert back to pricing on the bearish side of $73.26 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 bullish strategy, the trade would be profitable if DENALI THERAPEUTICS INC. COMMON STOCK closes at or above $72.10 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 52.64% 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.