Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for PELOTON INTERACTIVE INC. CLASS A COMMON STOCK (PTON) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. PTON was recently trading at $145.49 and has an implied volatility of 65.05% for this period. Based on an analysis of the options available for PTON expiring on 16-Apr-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $109.37-$145.52 at expiration. In this scenario, the average linear return for the trade would be 73.94%. Big -7.64% Change: After closing the last trading session at $157.53, PELOTON INTERACTIVE INC. CLASS A COMMON STOCK opened today at $149.00 and has reached a low of $144.20. Trade approach: A movement as big as -7.64% is a significantly bearish indicator, so this trade is designed to be profitable if PTON maintains its current direction and does not revert back to pricing on the bullish side of $145.49 on 16-Apr-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 PELOTON INTERACTIVE INC. CLASS A COMMON STOCK closes at or below $170.92 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 71.34% 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.