Quantchabot has detected a promising Covered Call trade opportunity for TREACE MEDICAL CONCEPTS INC. (TMCI) for the 16-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TMCI was recently trading at $21.77 and has an implied volatility of 67.91% for this period. Based on an analysis of the options available for TMCI expiring on 16-Jun-2023, there is a 36.25% likelihood that the underlying will close within the analyzed range of $21.77-$37.31 at expiration. In this scenario, the average linear return for the trade would be 34.26%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, TREACE MEDICAL CONCEPTS 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 TMCI on StockTwits appears to be significantly positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bullish strategy, the trade would be profitable if TREACE MEDICAL CONCEPTS INC. closed at or above $20.97 on 16-Jun-2023. Based on our analysis, there is a 55.02% 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.