StockTwits Trending Alert: Trading recent interest in SCHWAB U.S. DIVIDEND EQUITY ET $SCHD

Quantchabot has detected a promising Bear Call Spread trade opportunity for SCHWAB U.S. DIVIDEND EQUITY ET (SCHD) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SCHD was recently trading at $76.94 and has an implied volatility of 17.63% for this period. Based on an analysis of the options available for SCHD expiring on 21-Apr-2023, there is a 27.66% likelihood that the underlying will close within the analyzed range of $69.91-$76.94 at expiration. In this scenario, the average linear return for the trade would be 376.33%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, SCHWAB U.S. DIVIDEND EQUITY ET 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 SCHD 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 SCHWAB U.S. DIVIDEND EQUITY ET closed at or below $76.95 on 21-Apr-2023. Based on our analysis, there is a 43.56% 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.