Quantchabot has detected a promising Covered Put trade opportunity for TANDEM DIABETES CARE INC. COM (TNDM) for the 23-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TNDM was recently trading at $58.31 and has an implied volatility of 53.30% for this period. Based on an analysis of the options available for TNDM expiring on 23-Sep-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $47.96-$58.49 at expiration. In this scenario, the average linear return for the trade would be 12.57%.
Big -15.46% Change: After closing the last trading session at $68.97, TANDEM DIABETES CARE INC. COM opened today at $62.00 and has reached a low of $56.74.
Trade approach: A movement as big as -15.46% is a significantly bearish indicator, so this trade is designed to be profitable if TNDM maintains its current direction and does not revert back to pricing on the bullish side of $58.31 on 23-Sep-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 TANDEM DIABETES CARE INC. COM closes at or below $59.19 on 23-Sep-2022. Based on our risk-neutral analysis, there is a 52.39% 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.