StockTwits Trending Alert: Trading recent interest in ISHARES CORE S&P SMALL-CAP ETF $IJR

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Call Spread trade opportunity for ISHARES CORE S&P SMALL-CAP ETF (IJR) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

IJR was recently trading at $81.73 and has an implied volatility of 28.06% for this period. Based on an analysis of the options available for IJR expiring on 18-Dec-2020, there is a 34.07% likelihood that the underlying will close within the analyzed range of $75.01-$81.73 at expiration. In this scenario, the average linear return for the trade would be 74.84%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, ISHARES CORE S&P SMALL-CAP ETF 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 IJR 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 ISHARES CORE S&P SMALL-CAP ETF closed at or below $81.85 on 18-Dec-2020. Based on our analysis, there is a 50.62% 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.