Absolutely this. It's a timing play. He's got pretty much one count between we he receives the snap before he goes into his throwing motion. The defense is showing the fade is open. (Being "open" doesn't mean there is no coverage, just no help over the top. There is no way to determine if the receiver will have a step in that one count.) If the fade isn't his first progression, then it's pointless, because he doesn't have time for it to be a second progression.
Some of the posters get this idea that Tommy is out there playing backyard football with a three mississippi count before the rushers release. There is no time for looking at each option before committing. He reads his first progression, and if it's there (it was), he throws it. What is going on with second option is irrelevant if the first option is open. If he throws the ball better, it's a great read.
I actually like the play call...if it's on third down and you know you'll go for it on 4th. On fourth, call a play with a run or a short, high percentage pattern as the first two reads.
Terrible play call.