Quantchabot has detected a promising Long Risk Reversal trade opportunity for CHIMERA INVESTMENT (CIM) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CIM was recently trading at $5.19 and has an implied volatility of 46.39% for this period. Based on an analysis of the options available for CIM expiring on 17-Jan-2025, there is a 39.56% likelihood that the underlying will close within the analyzed range of $5.19-$10.33 at expiration. In this scenario, the average linear return for the trade would be 192.87%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, CHIMERA INVESTMENT 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 CIM 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 CHIMERA INVESTMENT closed at or above $5.10 on 17-Jan-2025. Based on our analysis, there is a 56.56% 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.
Leave a Reply
You must be logged in to post a comment.