Quantchabot has detected a new Bull Call Spread trade opportunity for TANDEM DIABETES CARE INC. COM (TNDM) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TNDM was recently trading at $35.72 and has an implied volatility of 61.52% for this period. Based on an analysis of the options available for TNDM expiring on 17-Jan-2025, there is a 34.22% likelihood that the underlying will close within the analyzed range of $35.84-$42.58 at expiration. In this scenario, the average linear return for the trade would be 10.35%.
Big 7.35% Change: After closing the last trading session at $33.27, TANDEM DIABETES CARE INC. COM opened today at $32.66 and has reached a high of $35.74.
Trade approach: A movement as big as 7.35% 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 $35.72 on 17-Jan-2025. 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 $35.80 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 50.26% 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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