The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for TENET HEALTHCARE () for the 16-Feb-2018 expiration period. You can analyze the opportunity in depth over at the .
THC was recently trading at $13.75 and has an implied volatility of 56.57% for this period. Based on an analysis of the options available for THC expiring on 16-Feb-2018, there is a 34.13% likelihood that the underlying will close within the analyzed range of $13.85-$20.90 at expiration. In this scenario, the average linear return for the trade would be 126.66%.
Big 8.70% Change: After closing the last trading session at $12.65, TENET HEALTHCARE opened today at $13.28 and has reached a high of $13.88.
Trade approach: A movement as big as 8.70% is a significantly 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 $13.75 on 16-Feb-2018. 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 $12.80 on 16-Feb-2018. Based on our risk-neutral analysis, there is a 57.57% 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 .
This is an automated post generated based on a market analysis of delayed data at 11/7/2017 10:18:25 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.