StockTwits Trending Alert: Trading recent interest in SPDR CONSUMER STAPLES SELECT $XLP

Quantchabot has detected a promising Bull Put Spread trade opportunity for SPDR CONSUMER STAPLES SELECT (XLP) for the 16-Dec-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

XLP was recently trading at $76.20 and has an implied volatility of 15.75% for this period. Based on an analysis of the options available for XLP expiring on 16-Dec-2022, there is a 36.86% likelihood that the underlying will close within the analyzed range of $76.20-$79.40 at expiration. In this scenario, the average linear return for the trade would be 34.68%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, SPDR CONSUMER STAPLES SELECT 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 XLP on StockTwits appears to be moderately 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 SPDR CONSUMER STAPLES SELECT closed at or above $76.14 on 16-Dec-2022. Based on our analysis, there is a 53.41% 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.