Quantchabot has detected a promising Covered Put trade opportunity for REDFIN CORPORATION COMMON STOCK (RDFN) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RDFN was recently trading at $6.32 and has an implied volatility of 93.70% for this period. Based on an analysis of the options available for RDFN expiring on 17-Feb-2023, there is a 33.24% likelihood that the underlying will close within the analyzed range of $3.53-$6.32 at expiration. In this scenario, the average linear return for the trade would be 700.00%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, REDFIN CORPORATION COMMON STOCK 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 RDFN 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 REDFIN CORPORATION COMMON STOCK closed at or below $9.42 on 17-Feb-2023. Based on our analysis, there is a 74.10% 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.