StockTwits Trending Alert: Trading recent interest in ALCOA $AA

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Put Spread trade opportunity for ALCOA (AA) for the 8-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AA was recently trading at $8.77 and has an implied volatility of 71.81% for this period. Based on an analysis of the options available for AA expiring on 8-May-2020, there is a 34.37% likelihood that the underlying will close within the analyzed range of $8.77-$9.83 at expiration. In this scenario, the average linear return for the trade would be 22.28%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, ALCOA 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 AA 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 ALCOA closed at or above $8.70 on 8-May-2020. Based on our analysis, there is a 52.83% 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.