Quantchabot has detected a promising Bear Call Spread trade opportunity for INVESCO DB USD INDEX BULLISH FUND ETF (UUP) for the 28-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UUP was recently trading at $29.81 and has an implied volatility of 12.18% for this period. Based on an analysis of the options available for UUP expiring on 28-Oct-2022, there is a 31.45% likelihood that the underlying will close within the analyzed range of $28.75-$29.81 at expiration. In this scenario, the average linear return for the trade would be 57.54%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, INVESCO DB USD INDEX BULLISH FUND ETF 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 UUP 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 INVESCO DB USD INDEX BULLISH FUND ETF closed at or below $29.90 on 28-Oct-2022. Based on our analysis, there is a 50.37% 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.