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Quantchabot has detected a promising Long Call trade opportunity for GINKGO BIOWORKS HOLDINGS INC (DNA) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DNA was recently trading at $11.06 and has an implied volatility of 101.43% for this period. Based on an analysis of the options available for DNA expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $11.06-$11.77 at expiration. In this scenario, the average linear return for the trade would be 37.80%.
Big 7.90% Change: After closing the last trading session at $10.25, GINKGO BIOWORKS HOLDINGS INC opened today at $10.65 and has reached a high of $11.06.
Trade approach: A movement as big as 7.90% is a significantly bullish indicator, so this trade is designed to be profitable if DNA maintains its current direction and does not revert back to pricing on the bearish side of $11.06 on 15-Oct-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 GINKGO BIOWORKS HOLDINGS INC closes at or above $11.00 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 53.50% 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.