StockTwits Trending Alert: Trading recent interest in XENON PHARMACEUTICALS INC $XENE

Quantchabot has detected a promising Long Risk Reversal trade opportunity for XENON PHARMACEUTICALS INC (XENE) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

XENE was recently trading at $30.48 and has an implied volatility of 67.98% for this period. Based on an analysis of the options available for XENE expiring on 21-Oct-2022, there is a 34.71% likelihood that the underlying will close within the analyzed range of $30.48-$45.47 at expiration. In this scenario, the average linear return for the trade would be 46.15%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, XENON PHARMACEUTICALS 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 XENE on StockTwits appears to be significantly 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 XENON PHARMACEUTICALS INC closed at or above $30.25 on 21-Oct-2022. Based on our analysis, there is a 51.32% 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.