Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Long Risk Reversal trade opportunity for CANAAN INC. ADR OVERVIEW (CAN) for the 20-Aug-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CAN was recently trading at $6.24 and has an implied volatility of 121.21% for this period. Based on an analysis of the options available for CAN expiring on 20-Aug-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.24-$8.85 at expiration. In this scenario, the average linear return for the trade would be 91.33%. Big 11.03% Change: After closing the last trading session at $5.62, CANAAN INC. ADR OVERVIEW opened today at $5.94 and has reached a high of $6.42. Trade approach: A movement as big as 11.03% is a significantly bullish indicator, so this trade is designed to be profitable if CAN maintains its current direction and does not revert back to pricing on the bearish side of $6.24 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 bullish strategy, the trade would be profitable if CANAAN INC. ADR OVERVIEW closes at or above $5.89 on 20-Aug-2021. Based on our risk-neutral analysis, there is a 56.57% 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.