Quantchabot has detected a promising Covered Put trade opportunity for SEMRUSH HOLDINGS INC (SEMR) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SEMR was recently trading at $9.39 and has an implied volatility of 72.15% for this period. Based on an analysis of the options available for SEMR expiring on 21-Apr-2023, there is a 32.55% likelihood that the underlying will close within the analyzed range of $6.01-$9.39 at expiration. In this scenario, the average linear return for the trade would be 42.48%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, SEMRUSH HOLDINGS INC 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 SEMR 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 SEMRUSH HOLDINGS INC closed at or below $9.84 on 21-Apr-2023. Based on our analysis, there is a 52.42% 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.