Quantchabot has detected a promising Bear Call Spread trade opportunity for TANDEM DIABETES CARE INC. COM (TNDM) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TNDM was recently trading at $21.87 and has an implied volatility of 61.42% for this period. Based on an analysis of the options available for TNDM expiring on 20-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $18.02-$22.00 at expiration. In this scenario, the average linear return for the trade would be 24.37%.
Big -7.37% Change: After closing the last trading session at $23.61, TANDEM DIABETES CARE INC. COM opened today at $23.26 and has reached a low of $21.82.
Trade approach: A movement as big as -7.37% 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 $21.87 on 20-Oct-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 TANDEM DIABETES CARE INC. COM closes at or below $22.05 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.44% 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.