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Quantchabot has detected a promising Bear Put Spread trade opportunity for QIAGEN NV (QGEN) for the 17-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
QGEN was recently trading at $31.08 and has an implied volatility of 64.99% for this period. Based on an analysis of the options available for QGEN expiring on 17-Jan-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $26.70-$31.11 at expiration. In this scenario, the average linear return for the trade would be 35.15%.
Big -25.05% Change: After closing the last trading session at $41.47, QIAGEN NV opened today at $30.57 and has reached a low of $30.23.
Trade approach: A movement as big as -25.05% is a significantly bearish indicator, so this trade is designed to be profitable if QGEN maintains its current direction and does not revert back to pricing on the bullish side of $31.08 on 17-Jan-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 QIAGEN NV closes at or below $31.15 on 17-Jan-2020. Based on our risk-neutral analysis, there is a 50.30% 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.