StockTwits Trending Alert: Trading recent interest in ISHARES IBOXX $ HIGH YIELD COR $HYG

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Quantchabot has detected a promising Bear Put Spread trade opportunity for ISHARES IBOXX $ HIGH YIELD COR (HYG) for the 14-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HYG was recently trading at $87.18 and has an implied volatility of 4.41% for this period. Based on an analysis of the options available for HYG expiring on 14-May-2021, there is a 33.97% likelihood that the underlying will close within the analyzed range of $86.53-$87.18 at expiration. In this scenario, the average linear return for the trade would be 62.39%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, ISHARES IBOXX $ HIGH YIELD COR 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 HYG 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 ISHARES IBOXX $ HIGH YIELD COR closed at or below $87.21 on 14-May-2021. Based on our analysis, there is a 51.65% 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.