Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for ITERIS (ITI) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. ITI was recently trading at $7.58 and has an implied volatility of 77.03% for this period. Based on an analysis of the options available for ITI expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.58-$9.29 at expiration. In this scenario, the average linear return for the trade would be 22.07%. Big 11.96% Change: After closing the last trading session at $6.77, ITERIS opened today at $6.85 and has reached a high of $7.73. Trade approach: A movement as big as 11.96% is a significantly bullish indicator, so this trade is designed to be profitable if ITI maintains its current direction and does not revert back to pricing on the bearish side of $7.58 on 21-May-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 ITERIS closes at or above $7.15 on 21-May-2021. Based on our risk-neutral analysis, there is a 61.33% 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.