StockTwits Trending Alert: Trading recent interest in KOHL’S $KSS

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Quantchabot has detected a promising Bear Put Spread trade opportunity for KOHL’S (KSS) for the 5-Mar-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KSS was recently trading at $55.97 and has an implied volatility of 84.30% for this period. Based on an analysis of the options available for KSS expiring on 5-Mar-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $48.35-$55.97 at expiration. In this scenario, the average linear return for the trade would be 44.73%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, KOHL’S 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 KSS 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 KOHL’S closed at or below $56.04 on 5-Mar-2021. Based on our analysis, there is a 50.33% 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.