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Quantchabot has detected a promising Bull Put Spread trade opportunity for CATERPILLAR (CAT) for the 26-Jul-2019 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CAT was recently trading at $135.96 and has an implied volatility of 25.02% for this period. Based on an analysis of the options available for CAT expiring on 26-Jul-2019, there is a 29.75% likelihood that the underlying will close within the analyzed range of $135.94-$143.28 at expiration. In this scenario, the average linear return for the trade would be 88.43%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, CATERPILLAR was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.
Trade approach: The recent sentiment change in CAT on StockTwits appears to be moderately positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bullish strategy, the trade would be profitable if CATERPILLAR closed at or above $135.54 on 26-Jul-2019. Based on our analysis, there is a 47.60% 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.
This is an automated post generated based on a market analysis of delayed data at 7/12/2019 10:31:50 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.