Value questions about specific plays

[Callwritingguy]

Does anyone know why Nitromed Inc (NTMD) call premiums are so elevated?

Thanks,
Bill

 

[MTE]

What makes you think they are elevated?

 

[Callwritingguy]

well, the stock is currently at 7.34, and the 7.50 call premium is .20 which is a 4.90% return if called which seems to imply quite a bit of volatility.

I can't really seem to find much news or anything that would support this kind of premium pricing... just wondering if anybody knew anything that I might be missing.

Bill

 

[MTE]

IV is high at the OTM strikes, but the ATM IV is about 63% for Apr, 75% for May, 70% for Jun and 72% for Sep, which is normal when looking at past IV levels.