Quantchabot has detected a promising Bear Call Spread trade opportunity for VERIZON COMMUNICATIONS (VZ) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VZ was recently trading at $40.59 and has an implied volatility of 24.72% for this period. Based on an analysis of the options available for VZ expiring on 20-Jan-2023, there is a 40.05% likelihood that the underlying will close within the analyzed range of $34.45-$40.59 at expiration. In this scenario, the average linear return for the trade would be 80.92%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, VERIZON COMMUNICATIONS 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 VZ 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 VERIZON COMMUNICATIONS closed at or below $40.91 on 20-Jan-2023. Based on our analysis, there is a 58.06% 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.