Does FBRX IV Look Way High to You Also?

[zghorner]

Sept @ over 500% just makes no sense to me looking at the chart...what do you guys think here? Not great liquidity but definitely seems like an opportunity for some net credit strategies.

 

[newwurldmn]

Market is totally mispriced. How could a clinical stage biotech with one drug possibly have 500 vol 3 weeks out!

 

[zghorner]

Market is totally mispriced. How could a clinical stage biotech with one drug possibly have 500 vol 3 weeks out!

So you are sarcastically saying 500% is perfectly reasonable in this situation and these options are not overpriced, got it.

 

[tsznecki]

Check if there's an FDA announcement due.

 

[zghorner]

Check if there's an FDA announcement due.

yep that's it, on the 7th they are releasing data on a phase 2 clinical trial. Market pricing in a big move i suppose.

 

[newwurldmn]

So you are sarcastically saying 500% is perfectly reasonable in this situation and these options are not overpriced, got it.

well I bought a reasonable about of gamma, so yes. I think the vol is unreasonable. I think the vol is too cheap.

 

[zghorner]

well I bought a reasonable about of gamma, so yes. I think the vol is unreasonable. I think the vol is too cheap.

interesting. How did you go about dong that (which long gamma strategy)?

 

[newwurldmn]

interesting. How did you go about dong that (which long gamma strategy)?

Im not comfortable sharing that here. But o believe the vol is cheap.

 

[zghorner]

Im not comfortable sharing that here. But o believe the vol is cheap.

fair enough. Looking forward to seeing what happens.

 

[newwurldmn]

fair enough. Looking forward to seeing what happens.

me too.