Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Short Risk Reversal trade opportunity for PIONEER NATURAL RESOURCES (PXD) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PXD was recently trading at $270.18 and has an implied volatility of 40.66% for this period. Based on an analysis of the options available for PXD expiring on 20-Jan-2023, there is a 42.86% likelihood that the underlying will close within the analyzed range of $177.91-$270.18 at expiration. In this scenario, the average linear return for the trade would be 75.62%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, PIONEER NATURAL RESOURCES 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 PXD 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 PIONEER NATURAL RESOURCES closed at or below $271.00 on 20-Jan-2023. Based on our analysis, there is a 59.07% 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.