Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Put Spread trade opportunity for YUM CHINA HOLDINGS INC (YUMC) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
YUMC was recently trading at $61.22 and has an implied volatility of 21.94% for this period. Based on an analysis of the options available for YUMC expiring on 15-Oct-2021, there is a 34.09% likelihood that the underlying will close within the analyzed range of $57.43-$61.22 at expiration. In this scenario, the average linear return for the trade would be 51.52%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, YUM CHINA HOLDINGS INC 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 YUMC 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 YUM CHINA HOLDINGS INC closed at or below $61.85 on 15-Oct-2021. Based on our analysis, there is a 56.32% 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.