StockTwits Trending Alert: Trading recent interest in AMERICAN WATER WORKS $AWK

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Put Spread trade opportunity for AMERICAN WATER WORKS (AWK) for the 16-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AWK was recently trading at $146.48 and has an implied volatility of 27.50% for this period. Based on an analysis of the options available for AWK expiring on 16-Sep-2022, there is a 33.27% likelihood that the underlying will close within the analyzed range of $125.08-$146.48 at expiration. In this scenario, the average linear return for the trade would be 70.17%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, AMERICAN WATER WORKS 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 AWK on StockTwits appears to be significantly 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 AMERICAN WATER WORKS closed at or below $146.80 on 16-Sep-2022. Based on our analysis, there is a 49.66% 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.