The automated Quantcha Trade Ideas Service has detected a promising
THC was recently trading at $22.67 and has an implied volatility of 49.64% for this period. Based on an analysis of the options available for THC expiring on 18-Aug-2017, there is a 68.27% likelihood that the underlying will close within the analyzed range of $14.14-$28.71 at expiration. In this scenario, the average linear return for the trade would be 20.58%.
Moneyness: These options are currently 0.02% in the money and there is a 64.24% likelihood that these options will be exercised before or at expiration.
Most upside: If TENET HEALTHCARE closes at or above $20.00, this trade could return up to 28.12%. Based on our analysis, there is a 50.84% likelihood of this return.
The downside: As with any covered call, the risk is substantial as it is vulnerable to a downturn in the underlying itself. There is a 23.53% chance the underlying will close at or below its breakeven price of $15.61, resulting in a net loss on the trade.
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This is an automated post generated based on a market analysis of delayed data at 2/28/2017 10:27:00 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.