StockTwits Trending Alert: Trading recent interest in NGM BIOPHARMACEUTICALS INC. $NGM

Quantchabot has detected a promising Covered Put trade opportunity for NGM BIOPHARMACEUTICALS INC. (NGM) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NGM was recently trading at $5.33 and has an implied volatility of 69.39% for this period. Based on an analysis of the options available for NGM expiring on 21-Apr-2023, there is a 32.50% likelihood that the underlying will close within the analyzed range of $3.48-$5.33 at expiration. In this scenario, the average linear return for the trade would be 37.06%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, NGM BIOPHARMACEUTICALS 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 NGM 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 NGM BIOPHARMACEUTICALS INC. closed at or below $5.83 on 21-Apr-2023. Based on our analysis, there is a 56.39% 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.