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Quantchabot has detected a promising Bear Call Spread trade opportunity for GLOBAL X ROBOTICS & ARTIFICIAL INTELLIGENCE (BOTZ) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BOTZ was recently trading at $34.34 and has an implied volatility of 20.51% for this period. Based on an analysis of the options available for BOTZ expiring on 21-May-2021, there is a 34.08% likelihood that the underlying will close within the analyzed range of $32.73-$34.34 at expiration. In this scenario, the average linear return for the trade would be 34.99%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, GLOBAL X ROBOTICS & ARTIFICIAL INTELLIGENCE 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 BOTZ on StockTwits appears to be significantly 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 GLOBAL X ROBOTICS & ARTIFICIAL INTELLIGENCE closed at or below $34.55 on 21-May-2021. Based on our analysis, there is a 55.00% 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.