Big Loser Alert: Trading today’s -7.9% move in TENARIS $TS

Quantchabot has detected a promising Covered Put trade opportunity for TENARIS (TS) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TS was recently trading at $28.67 and has an implied volatility of 47.71% for this period. Based on an analysis of the options available for TS expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $24.71-$28.81 at expiration. In this scenario, the average linear return for the trade would be 10.06%.

Big -7.90% Change: After closing the last trading session at $31.13, TENARIS opened today at $28.89 and has reached a low of $28.66.

Trade approach: A movement as big as -7.90% is a significantly bearish indicator, so this trade is designed to be profitable if TS maintains its current direction and does not revert back to pricing on the bullish side of $28.67 on 21-Apr-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 TENARIS closes at or below $29.12 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 52.84% 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.






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