52-Week High Alert: Trading today’s movement in TENET HEALTHCARE $THC

Quantchabot has detected a new Bull Call Spread trade opportunity for TENET HEALTHCARE (THC) for the 21-Jun-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

THC was recently trading at $137.11 and has an implied volatility of 30.90% for this period. Based on an analysis of the options available for THC expiring on 21-Jun-2024, there is a 34.32% likelihood that the underlying will close within the analyzed range of $137.34-$144.80 at expiration. In this scenario, the average linear return for the trade would be 10.55%.

52 week high: TENET HEALTHCARE recently reached a new 52-week high at $137.33. THC had traded in the range $51.04-$136.80 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if THC maintains its current direction and does not revert back to pricing on the bearish side of $137.11 on 21-Jun-2024. 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 TENET HEALTHCARE closes at or above $137.10 on 21-Jun-2024. Based on our risk-neutral analysis, there is a 51.29% 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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