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Quantchabot has detected a promising Bear Put Spread trade opportunity for TELADOC HEALTH INC (TDOC) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TDOC was recently trading at $168.51 and has an implied volatility of 43.06% for this period. Based on an analysis of the options available for TDOC expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $138.06-$168.55 at expiration. In this scenario, the average linear return for the trade would be 65.47%.
Big -9.55% Change: After closing the last trading session at $186.31, TELADOC HEALTH INC opened today at $174.71 and has reached a low of $168.27.
Trade approach: A movement as big as -9.55% is a significantly bearish indicator, so this trade is designed to be profitable if TDOC maintains its current direction and does not revert back to pricing on the bullish side of $168.51 on 16-Jul-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if TELADOC HEALTH INC closes at or below $169.10 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 50.65% 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.