Quantchabot has detected a promising Short Risk Reversal trade opportunity for LESLIES INC. COMMON STOCK (LESL) for the 17-May-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LESL was recently trading at $5.42 and has an implied volatility of 53.61% for this period. Based on an analysis of the options available for LESL expiring on 17-May-2024, there is a 30.93% likelihood that the underlying will close within the analyzed range of $3.73-$5.42 at expiration. In this scenario, the average linear return for the trade would be 69.66%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, LESLIES 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 LESL 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 LESLIES INC. COMMON STOCK closed at or below $5.95 on 17-May-2024. Based on our analysis, there is a 55.92% 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.