Quantchabot has detected a promising Covered Put trade opportunity for PROSHARES ULTRA SEMICONDUCTORS (USD) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
USD was recently trading at $20.28 and has an implied volatility of 69.24% for this period. Based on an analysis of the options available for USD expiring on 17-Feb-2023, there is a 32.96% likelihood that the underlying will close within the analyzed range of $11.75-$20.27 at expiration. In this scenario, the average linear return for the trade would be 208.70%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, PROSHARES ULTRA SEMICONDUCTORS 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 USD 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 PROSHARES ULTRA SEMICONDUCTORS closed at or below $29.96 on 17-Feb-2023. Based on our analysis, there is a 74.70% 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.