The automated Quantcha Trade Ideas Service has detected a promising Bear Put Spread trade opportunity for DIREXION DAILY GOLD MINERS BUL (NUGT) for the 21-Jul-2017 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NUGT was recently trading at $26.08 and has an implied volatility of 81.46% for this period. Based on an analysis of the options available for NUGT expiring on 21-Jul-2017, there is a 33.54% likelihood that the underlying will close within the analyzed range of $22.22-$26.09 at expiration. In this scenario, the average linear return for the trade would be 65.77%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, DIREXION DAILY GOLD MINERS BUL 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 NUGT on StockTwits appears to be moderately 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 DIREXION DAILY GOLD MINERS BUL closed at or below $26.09 on 21-Jul-2017. Based on our analysis, there is a 49.41% 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.