Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for ENERGY SELECT SECTOR SPDR (XLE) for the 9-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. XLE was recently trading at $29.20 and has an implied volatility of 38.43% for this period. Based on an analysis of the options available for XLE expiring on 9-Oct-2020, there is a 34.23% likelihood that the underlying will close within the analyzed range of $27.55-$29.20 at expiration. In this scenario, the average linear return for the trade would be 67.08%. Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, ENERGY SELECT SECTOR SPDR 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 XLE 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 ENERGY SELECT SECTOR SPDR closed at or below $29.21 on 9-Oct-2020. Based on our analysis, there is a 50.21% 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.