Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for VIPSHOP HOLDINGS (VIPS) for the 23-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. VIPS was recently trading at $22.84 and has an implied volatility of 73.37% for this period. Based on an analysis of the options available for VIPS expiring on 23-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $22.85-$29.51 at expiration. In this scenario, the average linear return for the trade would be 20.36%. Big 7.71% Change: After closing the last trading session at $21.21, VIPSHOP HOLDINGS opened today at $21.66 and has reached a high of $23.05. Trade approach: A movement as big as 7.71% is a significantly bullish indicator, so this trade is designed to be profitable if VIPS maintains its current direction and does not revert back to pricing on the bearish side of $22.84 on 23-Jul-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 VIPSHOP HOLDINGS closes at or above $22.80 on 23-Jul-2021. Based on our risk-neutral analysis, there is a 50.32% 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.