StockTwits Trending Alert: Trading recent interest in WENDY’S $WEN

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Long Risk Reversal trade opportunity for WENDY’S (WEN) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WEN was recently trading at $19.26 and has an implied volatility of 30.03% for this period. Based on an analysis of the options available for WEN expiring on 19-Jan-2024, there is a 37.80% likelihood that the underlying will close within the analyzed range of $19.27-$29.61 at expiration. In this scenario, the average linear return for the trade would be 84.76%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, WENDY’S 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 WEN 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 WENDY’S closed at or above $19.20 on 19-Jan-2024. Based on our analysis, there is a 54.00% 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.