Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for CENTENE (CNC) for the 28-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CNC was recently trading at $80.55 and has an implied volatility of 29.96% for this period. Based on an analysis of the options available for CNC expiring on 28-Jan-2022, there is a 34.15% likelihood that the underlying will close within the analyzed range of $80.55-$85.39 at expiration. In this scenario, the average linear return for the trade would be 39.24%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, CENTENE 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 CNC 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 CENTENE closed at or above $80.40 on 28-Jan-2022. Based on our analysis, there is a 51.29% 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.