StockTwits Trending Alert: Trading recent interest in UNITED STATES OIL $USO

Quantchabot has detected a promising Covered Put trade opportunity for UNITED STATES OIL (USO) for the 21-Jul-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

USO was recently trading at $66.11 and has an implied volatility of 49.09% for this period. Based on an analysis of the options available for USO expiring on 21-Jul-2023, there is a 31.02% likelihood that the underlying will close within the analyzed range of $45.71-$66.11 at expiration. In this scenario, the average linear return for the trade would be 180.72%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, UNITED STATES OIL 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 USO 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 UNITED STATES OIL closed at or below $98.75 on 21-Jul-2023. Based on our analysis, there is a 82.23% 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.