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Quantchabot has detected a promising Long Risk Reversal trade opportunity for EVERSOURCE ENERGY (ES) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ES was recently trading at $87.38 and has an implied volatility of 23.68% for this period. Based on an analysis of the options available for ES expiring on 18-Feb-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $87.38-$93.69 at expiration. In this scenario, the average linear return for the trade would be 13.99%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, EVERSOURCE ENERGY 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 ES on StockTwits appears to be significantly 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 EVERSOURCE ENERGY closed at or above $86.85 on 18-Feb-2022. Based on our analysis, there is a 53.50% 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.