Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Covered Put trade opportunity for ASBURY AUTOMOTIVE GROUP (ABG) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ABG was recently trading at $100.15 and has an implied volatility of 53.26% for this period. Based on an analysis of the options available for ABG expiring on 21-Aug-2020, there is a 34.11% likelihood that the underlying will close within the analyzed range of $88.21-$100.15 at expiration. In this scenario, the average linear return for the trade would be 11.88%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, ASBURY AUTOMOTIVE GROUP 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 ABG 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 ASBURY AUTOMOTIVE GROUP closed at or below $100.40 on 21-Aug-2020. Based on our analysis, there is a 50.76% 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.