The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for INTREXON CORPORATION () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
XON was recently trading at $10.70 and has an implied volatility of 67.63% for this period. Based on an analysis of the options available for XON expiring on 19-Jan-2018, there is a 34.13% likelihood that the underlying will close within the analyzed range of $7.98-$10.77 at expiration. In this scenario, the average linear return for the trade would be 29.23%.
Big -9.40% Change: After closing the last trading session at $11.81, INTREXON CORPORATION opened today at $11.63 and has reached a low of $10.26.
Trade approach: A movement as big as -9.40% is a significantly bearish indicator, so this trade is designed to be profitable if XON maintains its current direction and does not revert back to pricing on the bullish side of $10.70 on 19-Jan-2018. 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 INTREXON CORPORATION closes at or below $11.45 on 19-Jan-2018. Based on our risk-neutral analysis, there is a 58.12% 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 .
This is an automated post generated based on a market analysis of delayed data at 11/13/2017 10:18:19 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.