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Quantchabot has detected a promising Bull Call Spread trade opportunity for GINKGO BIOWORKS HOLDINGS INC (DNA) for the 20-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DNA was recently trading at $3.11 and has an implied volatility of 116.53% for this period. Based on an analysis of the options available for DNA expiring on 20-May-2022, there is a 34.24% likelihood that the underlying will close within the analyzed range of $3.11-$4.05 at expiration. In this scenario, the average linear return for the trade would be 17.65%.
Big 7.24% Change: After closing the last trading session at $2.90, GINKGO BIOWORKS HOLDINGS INC opened today at $2.90 and has reached a high of $3.13.
Trade approach: A movement as big as 7.24% 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 $3.11 on 20-May-2022. 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 $2.85 on 20-May-2022. Based on our risk-neutral analysis, there is a 63.05% 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.