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Quantchabot has detected a promising Covered Put trade opportunity for EVOLENT HEALTH INC (EVH) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EVH was recently trading at $6.21 and has an implied volatility of 147.94% for this period. Based on an analysis of the options available for EVH expiring on 15-May-2020, there is a 34.07% likelihood that the underlying will close within the analyzed range of $3.93-$6.21 at expiration. In this scenario, the average linear return for the trade would be 30.75%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, EVOLENT HEALTH 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 EVH on StockTwits appears to be significantly 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 EVOLENT HEALTH INC closed at or below $6.26 on 15-May-2020. Based on our analysis, there is a 50.63% 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.