StockTwits Trending Alert: Trading recent interest in MOMO INC. AMERICAN DEPOSITARY $MOMO

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Quantchabot has detected a promising Bear Put Spread trade opportunity for MOMO INC. AMERICAN DEPOSITARY (MOMO) for the 5-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MOMO was recently trading at $19.14 and has an implied volatility of 89.36% for this period. Based on an analysis of the options available for MOMO expiring on 5-Jun-2020, there is a 34.12% likelihood that the underlying will close within the analyzed range of $16.10-$19.14 at expiration. In this scenario, the average linear return for the trade would be 53.95%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, MOMO INC. AMERICAN DEPOSITARY 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 MOMO on StockTwits appears to be significantly negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bearish strategy, the trade would be profitable if MOMO INC. AMERICAN DEPOSITARY closed at or below $19.25 on 5-Jun-2020. Based on our analysis, there is a 51.31% 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.