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Quantchabot has detected a promising Bull Call Spread trade opportunity for DEXCOM (DXCM) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DXCM was recently trading at $341.00 and has an implied volatility of 50.94% for this period. Based on an analysis of the options available for DXCM expiring on 19-Jun-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $341.21-$413.08 at expiration. In this scenario, the average linear return for the trade would be 52.25%.
52 week high: DEXCOM recently reached a new 52-week high at $344.00. DXCM had traded in the range $113.63-$334.27 over the past year.
Trade approach: Reaching a new 52-week high is a 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 $341.00 on 19-Jun-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 $341.20 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 50.01% 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.