Quantchabot has detected a new Bear Call Spread trade opportunity for TERADATA (TDC) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TDC was recently trading at $22.63 and has an implied volatility of 34.86% for this period. Based on an analysis of the options available for TDC expiring on 17-Apr-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $20.41-$22.73 at expiration. In this scenario, the average linear return for the trade would be 79.46%.
52 week low: TERADATA recently reached a new 52-week low at $22.10. TDC had traded in the range $22.14-$39.70 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if TDC maintains its current direction and does not revert back to pricing on the bullish side of $22.63 on 17-Apr-2025. 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 TERADATA closes at or below $23.25 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 58.44% 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.
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