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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 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TXG was recently trading at $108.11 and has an implied volatility of 72.69% for this period. Based on an analysis of the options available for TXG expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $85.96-$108.12 at expiration. In this scenario, the average linear return for the trade would be 31.74%.
Big -9.00% Change: After closing the last trading session at $118.81, 10X GENOMICS INC. CLASS A COMMON STOCK opened today at $117.03 and has reached a low of $106.85.
Trade approach: A movement as big as -9.00% 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 $108.11 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 10X GENOMICS INC. CLASS A COMMON STOCK closes at or below $108.80 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 51.09% 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.