How To Play Pozn- Fda Annoucement Aug. 1

I dont know anything about this stock or what the pending event is the vols are jacked to the moon and I would probably sit this one out unless I had a much better understanding of the company and whats pending... just MHO
 
I dont know anything about this stock or what the pending event is the vols are jacked to the moon and I would probably sit this one out unless I had a much better understanding of the company and whats pending
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There's a pending FDA decision on a migraine medication which is a combination of 2 existing migraine meds (see earlier post in this chain).
 
Summary Report July 31, 2007 5:57pm

Volatile Stocks
Stock Volume Price IVol
RAS 21.3M 10.36 2.49
POZN 1.4M 16.65 2.07
FMT 5.3M 5.77 1.78
IMH 3.0M 2.46 1.62

Covered Calls
Stock Price Strike Expires Premium
DENN 4 2.5 Aug '07 1.70
POZN 16.65 15 Aug '07 4.35
NFI 9.72 10 Aug '07 1.85
NFI 9.72 10 Sep '07 2.83

Straddles (Aug '07)
Stock Price Strike Premium % of Stock
FMT 2.60 7.50 2.60 45.06
NFI 4.10 10.00 4.10 42.18
POZN 7.00 15.00 7.00 42.04
POZN 6.70 17.50 6.70 40.24
 
Thanks I got the jist of that reading the thread.... I dont know enough about the company or the drug to dip into this pool
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Don't be a Waterboy. "You can do it!" (wink)

I don't think that the new drug is going to be anything of great significance in the world of medicine because it's just a combination of two existing medicines. However, it's of great importance to POZN because of their lousy financials (EPS of -.66 last year).

But any which way, it's a directional play and so far, I haven't seen anything in the option premiums that provides for a reasonable degree of risk/reward w/o knowing that direction.

And that's the two cents of my gist :)
 
Very very funny.... We have a crop of guys who trade individuals but thats not a name we trade and I dont sit on that desk. Long front month in SPX, just sold more vol then I should have ysterday.

But that volatility trading stuff is just theory anyway, can I get you a gatoraide?
 
Quote from psytrade:I don't care about put call parity. The fact is fundamentally it either goes to $10 or $30. Obviously it may lag on its way to $30 and the August call may not achieve the kind of profit I suggest. But to play both sides when one side is more in your favour suggest more an obsession with being "market neutral" than an understanding of fundamentals of this event.

If you want a record of biotech option trades I've made in the last 3 years I'll send it to you.
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POZN is down 9 bucks to $8.60

Well, so much for understanding the fundamentals of this event.
 
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