Quantchabot has detected a promising Bull 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 $19.05 and has an implied volatility of 90.99% for this period. Based on an analysis of the options available for TNDM expiring on 20-Oct-2023, there is a 34.69% likelihood that the underlying will close within the analyzed range of $19.06-$20.88 at expiration. In this scenario, the average linear return for the trade would be 17.72%.
Big 7.84% Change: After closing the last trading session at $17.66, TANDEM DIABETES CARE INC. COM opened today at $17.01 and has reached a high of $19.52.
Trade approach: A movement as big as 7.84% is a significantly bullish indicator, so this trade is designed to be profitable if TNDM maintains its current direction and does not revert back to pricing on the bearish side of $19.05 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 bullish strategy, the trade would be profitable if TANDEM DIABETES CARE INC. COM closes at or above $19.00 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 51.30% 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.