Big Loser Alert: Trading today’s -7.5% move in TERADATA $TDC

Quantchabot has detected a promising Bear Call Spread trade opportunity for TERADATA (TDC) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TDC was recently trading at $35.92 and has an implied volatility of 40.05% for this period. Based on an analysis of the options available for TDC expiring on 21-Oct-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $30.00-$36.09 at expiration. In this scenario, the average linear return for the trade would be 40.80%.

Big -7.52% Change: After closing the last trading session at $38.84, TERADATA opened today at $37.33 and has reached a low of $35.15.

Trade approach: A movement as big as -7.52% is a significantly bearish indicator, so this trade is designed to be profitable if TDC maintains its current direction and does not revert back to pricing on the bullish side of $35.92 on 21-Oct-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 TERADATA closes at or below $36.20 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.66% 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.