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Quantchabot has detected a promising Bull Put Spread trade opportunity for TWIST BIOSCIENCE CORPORATION COMMON STOCK (TWST) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TWST was recently trading at $94.77 and has an implied volatility of 68.97% for this period. Based on an analysis of the options available for TWST expiring on 20-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $94.78-$117.83 at expiration. In this scenario, the average linear return for the trade would be 22.01%.
52 week high: TWIST BIOSCIENCE CORPORATION COMMON STOCK recently reached a new 52-week high at $95.25. TWST had traded in the range $18.52-$93.54 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 TWST maintains its current direction and does not revert back to pricing on the bearish side of $94.77 on 20-Nov-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 TWIST BIOSCIENCE CORPORATION COMMON STOCK closes at or above $94.55 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 50.44% 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.