Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Call Spread trade opportunity for MATERIALS SELECT SECTOR SPDR (XLB) for the 23-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. XLB was recently trading at $66.51 and has an implied volatility of 22.49% for this period. Based on an analysis of the options available for XLB expiring on 23-Oct-2020, there is a 34.18% likelihood that the underlying will close within the analyzed range of $66.51-$69.41 at expiration. In this scenario, the average linear return for the trade would be 27.17%. Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, MATERIALS 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 XLB 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 MATERIALS SELECT SECTOR SPDR closed at or above $66.47 on 23-Oct-2020. Based on our analysis, there is a 50.61% 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.