Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for LYFT INC. CLASS A COMMON STOCK (LYFT) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LYFT was recently trading at $63.06 and has an implied volatility of 64.70% for this period. Based on an analysis of the options available for LYFT expiring on 7-May-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $63.06-$70.54 at expiration. In this scenario, the average linear return for the trade would be 83.02%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, LYFT INC. CLASS A COMMON STOCK 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 LYFT on StockTwits appears to be moderately 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 LYFT INC. CLASS A COMMON STOCK closed at or above $63.05 on 7-May-2021. Based on our analysis, there is a 50.07% 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.