Quantchabot has detected a promising Bear Call Spread trade opportunity for VANGUARD INFORMATION TECHNOLOG (VGT) for the 15-Mar-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VGT was recently trading at $436.25 and has an implied volatility of 21.43% for this period. Based on an analysis of the options available for VGT expiring on 15-Mar-2024, there is a 26.66% likelihood that the underlying will close within the analyzed range of $385.13-$436.25 at expiration. In this scenario, the average linear return for the trade would be 116.58%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, VANGUARD INFORMATION TECHNOLOG 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 VGT 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 VANGUARD INFORMATION TECHNOLOG closed at or below $438.30 on 15-Mar-2024. Based on our analysis, there is a 43.72% 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.