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Quantchabot has detected a promising Bull Call Spread trade opportunity for EVERSOURCE ENERGY (ES) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ES was recently trading at $87.40 and has an implied volatility of 25.39% for this period. Based on an analysis of the options available for ES expiring on 15-Jul-2022, there is a 34.43% likelihood that the underlying will close within the analyzed range of $87.40-$98.13 at expiration. In this scenario, the average linear return for the trade would be 39.15%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, EVERSOURCE ENERGY 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 ES on StockTwits appears to be moderately 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 EVERSOURCE ENERGY closed at or above $86.90 on 15-Jul-2022. Based on our analysis, there is a 52.26% 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.