Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Put Spread trade opportunity for NETGEAR (NTGR) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NTGR was recently trading at $40.63 and has an implied volatility of 41.85% for this period. Based on an analysis of the options available for NTGR expiring on 15-Jan-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $40.63-$44.22 at expiration. In this scenario, the average linear return for the trade would be 51.90%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, NETGEAR 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 NTGR 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 NETGEAR closed at or above $40.30 on 15-Jan-2021. Based on our analysis, there is a 53.87% 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.