xBrat Vic – Within the xBrat Stocks Predator, the Confluence Meter shows $CD in its list for today with two red and one yellow indicators. This is the stand out options trade opportunity for todays scan, with unusual options activity being front and centre.
Upon clicking on the RED icon under XA (xBrat Algo indicator), we see that when $CD hit $8.56 a 4 star bearish signal was generated.
Unusual Options Activity
Upon clicking on the RED icon under UA (Unusual Options Activity), we see that the Strike Price to review is the $7.5 PUTs with a 12/15/23 Expiration Date. It is also notable that the Victory Rate is above 10 at 16.57. This is the expected return on the account based on current stock price, unusual activity strike price, implied volatility and volume to open interest ratio. Roughly, how much money you can make with this single trade so if it says 16.57% that means that you expect a 16.57% ROI from today by the expiration date. With $1000 account size that means $166 profit based on current numbers. Typically it is considered good if the stock being considered has a Victory Rate 10.0 or above.
The Implied Volatility % is at 17.5 which is pretty low relative to the past year for this stock’s IV. There is a lot of Open Interest (OI) for this strike price as well. See the screenshots below:
$CD is having earnings coming out on 12/12/23 and the consensus is that it will miss it’s expected numbers (see red circle in screen shot). Which is also potentially bearish on the stock and favorable for a PUT position at the $7.5 strike.
Lastly, the daily chart shows plenty of fresh air both at the daily support/resistance (S/R) and the weekly S/R zones. There are no noted S/R zones from current price down to the $7.5 Strike at this time. See screenshot: