Big Gainer Alert: Trading today’s 7.2% move in PACIFIC BIOSCIENCES $PACB

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Quantchabot has detected a promising Bull Call Spread trade opportunity for PACIFIC BIOSCIENCES (PACB) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PACB was recently trading at $35.62 and has an implied volatility of 108.09% for this period. Based on an analysis of the options available for PACB expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $35.62-$38.82 at expiration. In this scenario, the average linear return for the trade would be 40.01%.

Big 7.16% Change: After closing the last trading session at $33.23, PACIFIC BIOSCIENCES opened today at $34.17 and has reached a high of $35.74.

Trade approach: A movement as big as 7.16% is a significantly bullish indicator, so this trade is designed to be profitable if PACB maintains its current direction and does not revert back to pricing on the bearish side of $35.62 on 15-Jan-2021. 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 PACIFIC BIOSCIENCES closes at or above $35.60 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.20% 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.