THC Call Spread Trade Totals $445K With 10.7% Gain in One Hour—Are Technicals and Skew Aligned?
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Large Volume THC Call Spread Nets Quick 10.7% Gain—Details Show Strategic Risk-Reward
A significant options trade unfolded in Tenet Healthcare (THC) when 2,400 contracts of a call spread changed hands at 9:45 AM for a VWAP price of $3.71. Remarkably, by 10:45 AM, the value of the spread had climbed to $4.10—netting the buyer an average gain of $0.39 per spread, or a swift 10.7% return within the hour. The underlying catalyst? THC stock moved up $0.52 from $179.76 to $180.28, nudging the trade into profit territory.
| Trade Metric | Value |
|---|---|
| Option Type | Call Spread (180/190) |
| Contracts Traded | 2,400 |
| Expiration Date | 19-Sep-25 |
| Days to Expiration | 30 |
| VWAP Trade Price | $3.71 |
| VWAP Bid Price | $3.13 |
| VWAP Ask Price | $4.28 |
| Reference Stock Price | $179.76 |
| Stock Price at 10:45AM | $180.28 |
Full details and visual breakdown are available with Market Chameleon’s multi-leg trade analyzer.
Profit Potential: $445K Outlay to Make Up to $755K—Maximum Reward Requires Move Above $190
This call spread required buyers to put up just over $445,000 to control exposure. Should THC climb past $190 by the September 19 expiration, the trade could deliver a maximum payout near $755,000—an outcome contingent on the stock surging above both strike levels within just 30 days.
Technical Indicators Are Bullish—THC Is Outperforming Market Benchmarks
Recent technical data paints a constructive backdrop for THC:
- Price at $180.28, up 1.26% on the day with a +0.8% move from the open.
- Currently trading 10.4% above its 20-day average and 20.8% over its 250-day average—a clear show of short-term and long-term momentum.
- THC is just 2.7% below its 52-week high and a commanding 64.2% above its 52-week low.
Measured against the SPY ETF, THC has outperformed in nearly every recent period—from today’s +1.3% versus SPY’s -1.0%, to 2-week, 3-month, and 1-year periods. Year-to-date, THC is up a robust 42.8%, well ahead of the SPY’s 8.7% gain. See below for a quick comparison of THC’s performance relative to SPY over multiple timeframes:
| Duration | THC Return | Low | High | SPY Return |
|---|---|---|---|---|
| Today | +1.3% | 178.28 | 180.86 | -1.0% |
| 2 Week | +12.5% | 158.76 | 180.86 | +0.9% |
| 1 Month | +3.0% | 146.60 | 185.25 | +0.9% |
| 3 Month | +7.8% | 146.60 | 185.25 | +6.8% |
| 6 Month | +32.9% | 109.82 | 185.25 | +3.9% |
| 1 Year | +15.4% | 109.82 | 185.25 | +14.5% |
| YTD | +42.8% | 109.82 | 185.25 | +8.7% |
| 3 Year | +185.4% | 36.69 | 185.25 | +54.9% |
| 5 Year | +533.0% | 21.34 | 185.25 | +97.3% |
With the price pushing toward the high end of its historical range and breaking above daily resistance at $182.08, technical indicators look supportive. For a breakdown of how moving averages are calculated and what they signify, refer to the Market Chameleon resource.
Skew Indicators Are Slightly Bearish—Option Skew Suggests Traders Are Hedging
Despite THC’s bullish technical profile, option market sentiment is more reserved. The proprietary 30-day implied volatility skew indicator is at a 28% rank, which leans bearish relative to its own 52-week range. In plain terms, the options market is pricing in more downside or less enthusiasm for significant near-term upside—even as the recent call spread bet implies a high reward if THC rallies.
For investors and traders seeking more patterns or multi-leg trades, check out the Market Chameleon multi-leg screener for similar opportunities.
Conclusion: Is the Trade a Bullish Bet Against Market Skepticism?
While the rapid gain in the THC call spread signals aggressive positioning for further upside, option skew metrics inject a note of caution. With technicals looking bullish but options sentiment suggesting traders are bracing for pullbacks, THC becomes a battleground of contrasting outlooks.
Should the stock cross above $190 by expiration, the reward could be substantial. Until then, keep an eye on technical momentum and any shift in the options market’s implied outlook. Are buyers betting on a breakout, or simply hedging ahead of potential volatility?
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