Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for BAUSCH HEALTH COMPANIES INC (BHC) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BHC was recently trading at $27.20 and has an implied volatility of 49.19% for this period. Based on an analysis of the options available for BHC expiring on 21-Jan-2022, there is a 34.23% likelihood that the underlying will close within the analyzed range of $27.20-$29.43 at expiration. In this scenario, the average linear return for the trade would be 44.10%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, BAUSCH HEALTH COMPANIES 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 BHC 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 BAUSCH HEALTH COMPANIES INC closed at or above $26.96 on 21-Jan-2022. Based on our analysis, there is a 54.48% 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.