Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Put Spread trade opportunity for JPMORGAN CHASE (JPM) for the 28-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JPM was recently trading at $168.23 and has an implied volatility of 25.48% for this period. Based on an analysis of the options available for JPM expiring on 28-Jan-2022, there is a 34.12% likelihood that the underlying will close within the analyzed range of $159.91-$168.23 at expiration. In this scenario, the average linear return for the trade would be 60.23%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, JPMORGAN CHASE 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 JPM on StockTwits appears to be moderately 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 JPMORGAN CHASE closed at or below $168.27 on 28-Jan-2022. Based on our analysis, there is a 50.17% 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.