Quantchabot has detected a promising Covered Put trade opportunity for BIG 5 SPORTING GOODS (BGFV) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BGFV was recently trading at $11.36 and has an implied volatility of 70.40% for this period. Based on an analysis of the options available for BGFV expiring on 19-Jan-2024, there is a 32.12% likelihood that the underlying will close within the analyzed range of $4.91-$11.36 at expiration. In this scenario, the average linear return for the trade would be 1033.33%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, BIG 5 SPORTING GOODS 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 BGFV 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 BIG 5 SPORTING GOODS closed at or below $16.86 on 19-Jan-2024. Based on our analysis, there is a 65.40% 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.