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Quantchabot has detected a promising Bull Put Spread trade opportunity for OWENS-CORNING (OC) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
OC was recently trading at $68.79 and has an implied volatility of 36.72% for this period. Based on an analysis of the options available for OC expiring on 16-Oct-2020, there is a 34.18% likelihood that the underlying will close within the analyzed range of $68.79-$76.38 at expiration. In this scenario, the average linear return for the trade would be 52.34%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, OWENS-CORNING 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 OC 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 OWENS-CORNING closed at or above $68.20 on 16-Oct-2020. Based on our analysis, there is a 53.33% 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.