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Quantchabot has detected a promising Long Risk Reversal trade opportunity for BLACKSTONE GROUP INC CLASS A (BX) for the 24-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BX was recently trading at $49.17 and has an implied volatility of 67.81% for this period. Based on an analysis of the options available for BX expiring on 24-Apr-2020, there is a 34.23% likelihood that the underlying will close within the analyzed range of $49.17-$56.33 at expiration. In this scenario, the average linear return for the trade would be 27.01%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, BLACKSTONE GROUP INC CLASS A 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 BX 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 BLACKSTONE GROUP INC CLASS A closed at or above $48.58 on 24-Apr-2020. Based on our analysis, there is a 53.64% 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.