Quantchabot has detected a promising Short Risk Reversal trade opportunity for PULTEGROUP (PHM) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PHM was recently trading at $53.47 and has an implied volatility of 36.07% for this period. Based on an analysis of the options available for PHM expiring on 17-Jan-2025, there is a 28.55% likelihood that the underlying will close within the analyzed range of $35.04-$53.47 at expiration. In this scenario, the average linear return for the trade would be 111.68%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, PULTEGROUP 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 PHM on StockTwits appears to be significantly 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 PULTEGROUP closed at or below $67.20 on 17-Jan-2025. Based on our analysis, there is a 62.72% 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.
Leave a Reply
You must be logged in to post a comment.