Post by babaoriley on Mar 11, 2014 12:34:51 GMT -5
Hard to believe, but I think part of it (a big part), is Deerfield selling, see what appears to be two separate trades for about 300,000 shares.
At any rate, I just sold 30 March 28 $3.50 strike, put options for .16, so about $450 after commissions; the margin requirement is $3000, which isn't bad, so about 2500 of cash tied up net of the trade proceeds. For about a two week period, with what I think is a very good safety profile.
What's wrong with this whole picture, though? I'll say again, I've been following stocks such as this for a long time and I've never seen as much option activity on a stock, especially with a relatively low market cap. Huge amounts are at risk here, much of it on the short side. Shorters are fighters; plus those like Deerfield, paring down their position before AdCom. Still believe that the buyers will outnumber sellers at some point before AdCom, but apparently not yet.
Got to sit chilly, and wait to make one's move.
At any rate, I just sold 30 March 28 $3.50 strike, put options for .16, so about $450 after commissions; the margin requirement is $3000, which isn't bad, so about 2500 of cash tied up net of the trade proceeds. For about a two week period, with what I think is a very good safety profile.
What's wrong with this whole picture, though? I'll say again, I've been following stocks such as this for a long time and I've never seen as much option activity on a stock, especially with a relatively low market cap. Huge amounts are at risk here, much of it on the short side. Shorters are fighters; plus those like Deerfield, paring down their position before AdCom. Still believe that the buyers will outnumber sellers at some point before AdCom, but apparently not yet.
Got to sit chilly, and wait to make one's move.