Big Loser Alert: Trading today’s -7.1% move in REPLIGEN $RGEN

Quantchabot has detected a promising Bear Call Spread trade opportunity for REPLIGEN (RGEN) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RGEN was recently trading at $191.83 and has an implied volatility of 50.88% for this period. Based on an analysis of the options available for RGEN expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $166.28-$192.24 at expiration. In this scenario, the average linear return for the trade would be 27.53%.

Big -7.10% Change: After closing the last trading session at $206.49, REPLIGEN opened today at $204.12 and has reached a low of $191.22.

Trade approach: A movement as big as -7.10% is a significantly bearish indicator, so this trade is designed to be profitable if RGEN maintains its current direction and does not revert back to pricing on the bullish side of $191.83 on 21-Oct-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 REPLIGEN closes at or below $193.15 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 51.30% 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.