MYGN - why the weird skew?
- Thread starter dmo
- Start date
This is really surprising. Option premium collapsed completely - yet the stock was minimally affected. Somehow the anticipation was priced into the options, but not into the stock.
I have to tip my hat to magicz on his info - he predicted the stock would not go down much on so-so results. This is the worst result possible, and the stock still didn't go down much. Not what I would have expected, given the huge anticipation built into the option premium and skew.
bought put option right @ the open and sold for some hefty profits.. spread was pretty large.. i thought MYGN would drop at least $4 to $6. glad i sold my puts or i would have been in big trouble.
Still holding 1 put option for 45 strike. I think stock goes lower in coming days. There was a upgrade today but the price target was 37.
lets see how it playes out...
anything below 43.50 is good for me.
Still holding 1 put option for 45 strike. I think stock goes lower in coming days. There was a upgrade today but the price target was 37.
lets see how it playes out...
anything below 43.50 is good for me.
I dont expect the price to go any lower from here. In fact it will creep up from this low. The expense of Fluziran is off their books which was around 60Mil last year. their pipeline looks healthy and they have positive cash flow. This is really dead money now until the other drugs are ready for phase III.
If you had a short strangle the IV collapse would have been exceptional.
If you had a short strangle the IV collapse would have been exceptional.
dmo, I wish I can tell you its a super secret strategy but its not. I follow the companies like any other. I read up on their drug, listen to their conference call, look at their pipeline, read their top analyst assessment, analyze their stock chart, read counter views, cross-ex their data with known publish studies of similiar drug or class of drug. In the end, you put all of it together and try to make your best estimation and make a buck or two from it. On rare occassion you hit a homerun but most of the time in Biotech you take small profit and run!
