Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for TIMKENSTEEL CORP (TMST) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. TMST was recently trading at $3.96 and has an implied volatility of 81.09% for this period. Based on an analysis of the options available for TMST expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $2.88-$3.96 at expiration. In this scenario, the average linear return for the trade would be 10.59%. Big -7.26% Change: After closing the last trading session at $4.27, TIMKENSTEEL CORP opened today at $4.17 and has reached a low of $3.94. Trade approach: A movement as big as -7.26% is a significantly bearish indicator, so this trade is designed to be profitable if TMST maintains its current direction and does not revert back to pricing on the bullish side of $3.96 on 16-Oct-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 TIMKENSTEEL CORP closes at or below $5.09 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 78.44% 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.