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Quantchabot has detected a promising Bear Call Spread trade opportunity for TELADOC HEALTH INC (TDOC) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TDOC was recently trading at $105.75 and has an implied volatility of 58.03% for this period. Based on an analysis of the options available for TDOC expiring on 21-Jan-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $83.88-$105.76 at expiration. In this scenario, the average linear return for the trade would be 68.88%.
52 week low: TELADOC HEALTH INC recently reached a new 52-week low at $100.51. TDOC had traded in the range $107.75-$308.00 over the past year.
Trade approach: Reaching a new 52-week low is a 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 $105.75 on 21-Jan-2022. 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 $107.05 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 52.08% 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.