This Global Leader in Virtual Care, Has Earned Two Accreditations
GlobeNewswire reported, Teladoc Health (NYSE: TDOC), the global leader in virtual care, announced it has earned two accreditations through ClearHealth Quality Institute’s Telemedicine Accreditation Program (TAP).
The company offers telehealth platform, delivering on-demand healthcare anytime, anywhere, through mobile devices, the Internet, video and phone.
The company’s solution connects its Members, with its over 3,000 board certified physicians and behavioral health professionals treating a range of conditions and cases from acute diagnoses, such as upper respiratory infection, urinary tract infection and sinusitis to dermatological conditions, anxiety and smoking cessation.
Recent data indicates the company served over 7,500 employers, health plans, health systems and other entities. These clients collectively purchased access to its solution for more than 20 million Members. Its solutions consist of an integrated technology platform, Provider network, consumer engagement strategies and entrenched distribution channels.
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The company gained independent accreditation for both its Consumer-to-Provider services for acute care needs, as well as its Provider-to-Consumer services, which focus on the ongoing provider/patient relationship when treating specialty and chronic conditions, including mental health.
“Delivering high-quality clinical care is at the heart of Teladoc Health’s mission. It’s central to our commitment to lead by example and elevate virtual care standards for ourselves, our members, and for the industry,” said Jason Tibbels, MD, chief quality officer, Teladoc Health.
To achieve CHQI accreditation for telemedicine, Teladoc Health completed a robust application process spanning both business and clinical operations.
It demonstrated the company’s long-term commitment to deliver the highest caliber of care in the industry, as evidenced by Teladoc Health’s other market-leading initiatives such as establishing the first and only Patient Safety Organization (PSO) for virtual care and research into antibiotic stewardship with USC.
“As more consumers depend on virtual care, they seek assurances that it is quality care, particularly as not all telemedicine providers set quantifiable care metrics. Consumers, medical providers, employers, and insurers alike generally feel more comfortable and more confident relying on healthcare entities that have secured accreditation,” said Michael Gomes, CEO, CHQI.
“By becoming a CHQI-accredited organization for telemedicine in two areas, Teladoc Health reaches a new standard of quality in the delivery of telemedicine in our country.”
The stock has recently been in an up-trend.
This move pushes the stock towards its old highs.
A Trade for Short Term Bulls
As with the ownership of any stock, buying TDOC could require a significant amount of capital and exposes the investor to standard risks of owning a stock.
To reduce the risks of a trade, an investor could purchase a call option. This allows them to benefit from upside moves in the stock while limiting risk to the amount paid for the options. However, buying a call option can also require a significant amount of capital and includes the risk of a 100% loss.
Whenever an option is bought, the maximum risk is always equal to 100% of the amount of spent to purchase the option. Since options cost significantly less than a stock, the risk in dollar terms will usually be relatively small to own an option.
To further limit the risks of the trade, an investor could use a bull call spread. This strategy consists of buying one call option and selling another at a higher strike price to help pay for the cost of buying the first call. The spread strategy always reduces the risk of an options trade.
This strategy is designed to profit from a gain in the underlying stock’s price but has the benefit of avoiding the large up-front capital outlay and downside risk of outright stock ownership. The potential risks and rewards of this strategy are summarized in the chart below.
Source: The Options Industry Council
Both the potential profit and loss for the bull call spread are limited. The maximum loss is equal to the net premium paid when the trade is opened. The maximum profit is limited to the difference between the strike prices, less the debit paid to put on the position.
This strategy could be especially appealing with high priced stocks where the share price and options premiums are often a significant commitment of capital for smaller investors.
A Specific Trade for TDOC
Every day, we scan the markets looking for trades with low risk and high potential rewards. These trades are available almost every day and we share them with you as we find them. Now, it’s important to remember these are trading opportunities in volatile stocks.
When we find a potential opportunity, we evaluate it with real market data. But because the trades are volatile, the opportunities may differ by the time you read this. To help you evaluate the current opportunity, we show our math and explain the strategy.
For TDOC, the December 20 options allow a trader to gain exposure to the stock.
A December 20 $85 call option can be bought for about $2.05 and the December 20 $90 call could be sold for about $0.80. This trade would cost $1.25 to open, or $125 since each contract covers 100 shares of stock.
The amount paid to enter the trade is the largest possible loss on the trade. This is generally true whenever a trader is creating a debit to enter an options trade. “Creating a debit” means there is a cost to enter the trade. You could create a debit by simply buying puts or calls to open a directional trade.
In this trade, the maximum loss would be equal to the amount spent to open the trade, or $125.
The maximum gain on the trade is equal to the difference in exercise prices less the amount of the premium paid to open the trade.
For this trade in TDOC the maximum gain is $3.75 ($90 – $85= $5; $5- $1.25 = $3.75). This represents $375 per contract since each contract covers 100 shares.
Most brokers will require minimum trading capital equal to the risk on the trade, or $125 to open this trade.
That is a potential gain of about 200% in TDOC, based on the amount risked in the trade. The trade could be closed early if the maximum gain is realized before the options expire.