Quantchabot has detected a promising Bear Call Spread trade opportunity for VERISK ANALYTICS (VRSK) for the 15-Dec-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VRSK was recently trading at $237.19 and has an implied volatility of 22.35% for this period. Based on an analysis of the options available for VRSK expiring on 15-Dec-2023, there is a 29.44% likelihood that the underlying will close within the analyzed range of $212.87-$237.19 at expiration. In this scenario, the average linear return for the trade would be 84.26%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, VERISK ANALYTICS 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 VRSK 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 VERISK ANALYTICS closed at or below $239.80 on 15-Dec-2023. Based on our analysis, there is a 48.85% 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.