Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for UNITED MICROELECTRONICS (UMC) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. UMC was recently trading at $10.75 and has an implied volatility of 80.17% for this period. Based on an analysis of the options available for UMC expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $10.75-$15.01 at expiration. In this scenario, the average linear return for the trade would be 80.09%. 52 week high: UNITED MICROELECTRONICS recently reached a new 52-week high at $10.78. UMC had traded in the range $2.10-$10.61 over the past year. Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if UMC maintains its current direction and does not revert back to pricing on the bearish side of $10.75 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 bullish strategy, the trade would be profitable if UNITED MICROELECTRONICS closes at or above $10.65 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.14% 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.