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Quantchabot has detected a promising Long Risk Reversal trade opportunity for WAYFAIR INC (W) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

W was recently trading at $71.50 and has an implied volatility of 143.47% for this period. Based on an analysis of the options available for W expiring on 17-Apr-2020, there is a 34.18% likelihood that the underlying will close within the analyzed range of $71.50-$91.72 at expiration. In this scenario, the average linear return for the trade would be 53.53%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, WAYFAIR INC 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 W 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 WAYFAIR INC closed at or above $69.80 on 17-Apr-2020. Based on our analysis, there is a 53.90% 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.