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Quantchabot has detected a promising Bear Call Spread trade opportunity for 10X GENOMICS INC. CLASS A COMMON STOCK (TXG) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TXG was recently trading at $183.02 and has an implied volatility of 65.31% for this period. Based on an analysis of the options available for TXG expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $164.88-$183.03 at expiration. In this scenario, the average linear return for the trade would be 20.99%.
Big -7.21% Change: After closing the last trading session at $197.24, 10X GENOMICS INC. CLASS A COMMON STOCK opened today at $192.53 and has reached a low of $183.02.
Trade approach: A movement as big as -7.21% is a significantly bearish indicator, so this trade is designed to be profitable if TXG maintains its current direction and does not revert back to pricing on the bullish side of $183.02 on 16-Apr-2021. 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 10X GENOMICS INC. CLASS A COMMON STOCK closes at or below $184.40 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 52.86% 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.