Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for OFFICE DEPOT INC. COMMON STOC (ODP) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ODP was recently trading at $22.07 and has an implied volatility of 86.06% for this period. Based on an analysis of the options available for ODP expiring on 21-Aug-2020, there is a 34.15% likelihood that the underlying will close within the analyzed range of $22.07-$27.02 at expiration. In this scenario, the average linear return for the trade would be 55.85%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, OFFICE DEPOT INC. COMMON STOC 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 ODP on StockTwits appears to be significantly 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 OFFICE DEPOT INC. COMMON STOC closed at or above $21.85 on 21-Aug-2020. Based on our analysis, there is a 51.99% 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.