Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for TATA MOTORS (TTM) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. TTM was recently trading at $4.10 and has an implied volatility of 75.22% for this period. Based on an analysis of the options available for TTM expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $2.94-$4.10 at expiration. In this scenario, the average linear return for the trade would be 30.49%. 52 week low: TATA MOTORS recently reached a new 52-week low at $4.09. TTM had traded in the range $4.17-$17.14 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 TTM maintains its current direction and does not revert back to pricing on the bullish side of $4.10 on 15-May-2020. 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 TATA MOTORS closes at or below $4.15 on 15-May-2020. Based on our risk-neutral analysis, there is a 51.31% 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.