StockTwits Trending Alert: Trading recent interest in DIREXION DAILY S&P500 BULL 3X $SPXL

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Quantchabot has detected a promising Bear Call Spread trade opportunity for DIREXION DAILY S&P500 BULL 3X (SPXL) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SPXL was recently trading at $98.72 and has an implied volatility of 43.39% for this period. Based on an analysis of the options available for SPXL expiring on 21-May-2021, there is a 34.11% likelihood that the underlying will close within the analyzed range of $89.36-$98.72 at expiration. In this scenario, the average linear return for the trade would be 79.34%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, DIREXION DAILY S&P500 BULL 3X 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 SPXL 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 DIREXION DAILY S&P500 BULL 3X closed at or below $99.89 on 21-May-2021. Based on our analysis, there is a 54.68% 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.