Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Call Spread trade opportunity for T-MOBILE US INC. COMMON STOCK (TMUS) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TMUS was recently trading at $115.58 and has an implied volatility of 23.94% for this period. Based on an analysis of the options available for TMUS expiring on 21-Jan-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $104.63-$115.60 at expiration. In this scenario, the average linear return for the trade would be 68.98%.

52 week low: T-MOBILE US INC. COMMON STOCK recently reached a new 52-week low at $114.36. TMUS had traded in the range $114.69-$150.20 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 TMUS maintains its current direction and does not revert back to pricing on the bullish side of $115.58 on 21-Jan-2022. 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 T-MOBILE US INC. COMMON STOCK closes at or below $117.05 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 54.98% 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.