Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for EHANG HOLDINGS LTD. ADR OVERVIEW (EH) for the 20-Aug-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. EH was recently trading at $28.32 and has an implied volatility of 88.31% for this period. Based on an analysis of the options available for EH expiring on 20-Aug-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $21.52-$28.32 at expiration. In this scenario, the average linear return for the trade would be 61.96%. Big -7.07% Change: After closing the last trading session at $30.47, EHANG HOLDINGS LTD. ADR OVERVIEW opened today at $30.54 and has reached a low of $28.25. Trade approach: A movement as big as -7.07% is a significantly bearish indicator, so this trade is designed to be profitable if EH maintains its current direction and does not revert back to pricing on the bullish side of $28.32 on 20-Aug-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 EHANG HOLDINGS LTD. ADR OVERVIEW closes at or below $28.70 on 20-Aug-2021. Based on our risk-neutral analysis, there is a 51.95% 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.