Quantchabot has detected a promising Long Risk Reversal trade opportunity for PROSHARES ULTRA S&P 500 (SSO) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SSO was recently trading at $59.44 and has an implied volatility of 30.87% for this period. Based on an analysis of the options available for SSO expiring on 17-Jan-2025, there is a 42.42% likelihood that the underlying will close within the analyzed range of $59.44-$92.08 at expiration. In this scenario, the average linear return for the trade would be 51.59%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, PROSHARES ULTRA S&P 500 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 SSO on StockTwits appears to be moderately 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 ULTRA S&P 500 closed at or above $57.75 on 17-Jan-2025. Based on our analysis, there is a 61.37% 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.