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Quantchabot has detected a promising Long Risk Reversal trade opportunity for PRECIGEN INC. COMMON STOCK (PGEN) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PGEN was recently trading at $5.74 and has an implied volatility of 164.42% for this period. Based on an analysis of the options available for PGEN expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $5.74-$7.25 at expiration. In this scenario, the average linear return for the trade would be 25.00%.
Big 30.16% Change: After closing the last trading session at $4.41, PRECIGEN INC. COMMON STOCK opened today at $4.81 and has reached a high of $5.78.
Trade approach: A movement as big as 30.16% is a significantly bullish indicator, so this trade is designed to be profitable if PGEN maintains its current direction and does not revert back to pricing on the bearish side of $5.74 on 16-Oct-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 PRECIGEN INC. COMMON STOCK closes at or above $4.85 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 76.53% 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.