52-Week Low Alert: Trading today’s movement in TELUS INTERNATIONAL (CDA) INC $TIXT

Quantchabot has detected a promising Covered Put trade opportunity for TELUS INTERNATIONAL (CDA) INC (TIXT) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TIXT was recently trading at $19.10 and has an implied volatility of 44.74% for this period. Based on an analysis of the options available for TIXT expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $16.02-$19.23 at expiration. In this scenario, the average linear return for the trade would be 17.29%.

52 week low: TELUS INTERNATIONAL (CDA) INC recently reached a new 52-week low at $18.68. TIXT had traded in the range $18.86-$35.70 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 TIXT maintains its current direction and does not revert back to pricing on the bullish side of $19.10 on 20-Jan-2023. 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 TELUS INTERNATIONAL (CDA) INC closes at or below $19.58 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 53.97% 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.