Quantchabot has detected a promising Bear Call Spread trade opportunity for VAXCYTE INC. COMMON STOCK (PCVX) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PCVX was recently trading at $50.68 and has an implied volatility of 46.25% for this period. Based on an analysis of the options available for PCVX expiring on 19-Jan-2024, there is a 31.20% likelihood that the underlying will close within the analyzed range of $39.19-$50.68 at expiration. In this scenario, the average linear return for the trade would be 51.24%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, VAXCYTE INC. COMMON STOCK 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 PCVX 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 VAXCYTE INC. COMMON STOCK closed at or below $53.40 on 19-Jan-2024. Based on our analysis, there is a 54.55% 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.