Big Loser Alert: Trading today’s -8.1% move in GINKGO BIOWORKS HOLDINGS INC $DNA

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for GINKGO BIOWORKS HOLDINGS INC (DNA) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DNA was recently trading at $6.27 and has an implied volatility of 93.34% for this period. Based on an analysis of the options available for DNA expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $4.62-$6.27 at expiration. In this scenario, the average linear return for the trade would be 36.20%.

Big -8.06% Change: After closing the last trading session at $6.82, GINKGO BIOWORKS HOLDINGS INC opened today at $6.79 and has reached a low of $6.13.

Trade approach: A movement as big as -8.06% is a significantly bearish indicator, so this trade is designed to be profitable if DNA maintains its current direction and does not revert back to pricing on the bullish side of $6.27 on 18-Feb-2022. 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 GINKGO BIOWORKS HOLDINGS INC closes at or below $6.55 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 55.67% 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.