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Big Loser Alert: Trading today’s -7.6% move in IGM BIOSCIENCES INC. COMMON STOCK

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Quantchabot has detected a promising Covered Put trade opportunity for IGM BIOSCIENCES INC. COMMON STOCK (IGMS) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

IGMS was recently trading at $41.88 and has an implied volatility of 74.74% for this period. Based on an analysis of the options available for IGMS expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $32.10-$41.88 at expiration. In this scenario, the average linear return for the trade would be 16.44%.

Big -7.62% Change: After closing the last trading session at $45.33, IGM BIOSCIENCES INC. COMMON STOCK opened today at $45.06 and has reached a low of $41.41.

Trade approach: A movement as big as -7.62% is a significantly bearish indicator, so this trade is designed to be profitable if IGMS maintains its current direction and does not revert back to pricing on the bullish side of $41.88 on 16-Oct-2020. 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 IGM BIOSCIENCES INC. COMMON STOCK closes at or below $43.39 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 55.28% 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.

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