Covered Call Alert: TELLURIAN INC $TELL returning up to 44.74% through 17-Jul-2020
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Quantchabot has detected a promising
TELL was recently trading at $8.40 and has an implied volatility of 69.21% for this period. Based on an analysis of the options available for TELL expiring on 17-Jul-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $4.81-$14.92 at expiration. In this scenario, the average linear return for the trade would be 11.17%.
Moneyness: These options are currently 31.03% out of the money and there is a 30.34% likelihood that these options will be exercised before or at expiration.
Most upside: If TELLURIAN INC closes at or above $11.00, this trade could return up to 44.74%. Based on our analysis, there is a 32.23% 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 42.37% chance the underlying will close at or below its breakeven price of $7.60, resulting in a net loss on the trade.
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