StockTwits Trending Alert: Trading recent interest in PINDUODUO INC. AMERICAN DEPOSITARY SHARES $PDD

Quantcha now offering unlimited commission-free options trading.

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

PDD was recently trading at $63.79 and has an implied volatility of 70.34% for this period. Based on an analysis of the options available for PDD expiring on 5-Jun-2020, there is a 34.16% likelihood that the underlying will close within the analyzed range of $55.48-$63.80 at expiration. In this scenario, the average linear return for the trade would be 43.53%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, PINDUODUO INC. AMERICAN DEPOSITARY SHARES 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 PDD on StockTwits appears to be moderately 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 PINDUODUO INC. AMERICAN DEPOSITARY SHARES closed at or below $64.25 on 5-Jun-2020. Based on our analysis, there is a 52.03% 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.