StockTwits Trending Alert: Trading recent interest in PROSHARES SHORT S&P500 $SH

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Call Spread trade opportunity for PROSHARES SHORT S&P500 (SH) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SH was recently trading at $15.91 and has an implied volatility of 17.15% for this period. Based on an analysis of the options available for SH expiring on 21-May-2021, there is a 34.20% likelihood that the underlying will close within the analyzed range of $15.91-$16.58 at expiration. In this scenario, the average linear return for the trade would be 24.00%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, PROSHARES SHORT S&P500 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 SH 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 PROSHARES SHORT S&P500 closed at or above $15.80 on 21-May-2021. Based on our analysis, there is a 56.79% 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.