Quantchabot has detected a promising Bull Call Spread trade opportunity for PROSHARES ULTRASHORT S&P500 (SDS) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SDS was recently trading at $45.48 and has an implied volatility of 43.95% for this period. Based on an analysis of the options available for SDS expiring on 17-Jan-2025, there is a 40.32% likelihood that the underlying will close within the analyzed range of $45.48-$90.87 at expiration. In this scenario, the average linear return for the trade would be 138.26%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, PROSHARES ULTRASHORT S&P500 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 SDS 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 PROSHARES ULTRASHORT S&P500 closed at or above $45.20 on 17-Jan-2025. Based on our analysis, there is a 56.59% 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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