Quantchabot has detected a promising Short Risk Reversal trade opportunity for SHIFT4 PAYMENTS INC (FOUR) for the 15-Dec-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FOUR was recently trading at $68.31 and has an implied volatility of 65.46% for this period. Based on an analysis of the options available for FOUR expiring on 15-Dec-2023, there is a 31.31% likelihood that the underlying will close within the analyzed range of $40.09-$68.31 at expiration. In this scenario, the average linear return for the trade would be 148.02%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, SHIFT4 PAYMENTS 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 FOUR 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 SHIFT4 PAYMENTS INC closed at or below $86.80 on 15-Dec-2023. Based on our analysis, there is a 63.56% 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.
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