What Is Net Social Sentiment?

A short-term signal that ranks stocks or ETFs by their potential for significant price losses. A high number here indicates that investors expect bad returns which means you should look more carefully at this stock before buying or holding.

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How to Downside Breakout 

Downside Breakout ranges from 0 to 100 and can be examined for a certain stock or an aggregation of stocks such as ETFs.

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A High Downside Breakout (80+) indicates higher demand for negative bets in the long-term options markets, unfavorable analyst coverage, and negative price momentum. This, in turn, means a potential for significant price loss in the next year.

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A Low Downside Breakout (20 or less) indicates a lower chance of such losses in the next year.

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A low Downside Breakout does not necessarily mean a high Upside Breakout. A stock can be positioned to have a lower chance of losses without having a higher chance of gains.

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For example, a Biotech stock could be viewed by the market as having a high probability of a clinical trial success. So if the trial is a success the stock might not move much because that success is said to be priced in but if it was to fail that could make the price move rapidly downward.  

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Update Frequency and Usage for Downside Breakout

Downside Breakout updates every 2-5 minutes. Even though it updates as much as Net Options Sentiment via options pricing dynamics, unlike Net Options Sentiment it contains other information outside of the options markets. Meaning it is vital information but does not move as sharply.