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Quantchabot has detected a promising Covered Put trade opportunity for GUARDANT HEALTH INC (GH) for the 16-Dec-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GH was recently trading at $39.32 and has an implied volatility of 93.15% for this period. Based on an analysis of the options available for GH expiring on 16-Dec-2022, there is a 33.67% likelihood that the underlying will close within the analyzed range of $19.14-$39.32 at expiration. In this scenario, the average linear return for the trade would be 184.18%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, GUARDANT HEALTH 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 GH 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 GUARDANT HEALTH INC closed at or below $55.82 on 16-Dec-2022. Based on our analysis, there is a 68.06% 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.