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Quantchabot has detected a promising Bull Put Spread trade opportunity for DEXCOM (DXCM) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DXCM was recently trading at $284.47 and has an implied volatility of 40.79% for this period. Based on an analysis of the options available for DXCM expiring on 20-Mar-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $284.93-$323.13 at expiration. In this scenario, the average linear return for the trade would be 48.17%.
Big 12.79% Change: After closing the last trading session at $252.21, DEXCOM opened today at $283.80 and has reached a high of $295.00.
Trade approach: A movement as big as 12.79% is a significantly bullish indicator, so this trade is designed to be profitable if DXCM maintains its current direction and does not revert back to pricing on the bearish side of $284.47 on 20-Mar-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if DEXCOM closes at or above $283.20 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 51.93% 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.