The only reason I use an Iron condor (apart from protection) is because of the lower margins because now you're essentially selling two verticals.
Snap - thats a shitty day. But I do understand that the vol is quite high - and anything w.r.t. to this stock would be speculative.
What different views? Aren't both an expression of decreasing vol within a given range - one just has more/some protection than the other? I definitely have no insight - have read all the news, and don't have an informed opinion. My wife works with the FDA and says they are very very conservative under the current administration. I was actually thinking a small covered call might work with this stock. The premium is high, and if it drops, the FDA meeting is not final, so there is a good chance for the further trials to work out well in the future. Definately would not be a large position... Thanks
Depends on how wide the short part of your iron condor is. I had also read that there is talk that the FDA will issue another complete response letter. But it's a real wild card. They had gone before and the FDA wanted a bigger trial. Now the FDA might want something else. Weight loss is tough because it's not that important (compared to cancers where there is no treatment option). Many weight loss and diabetes drugs have gone up to the FDA and almost all of them have been rejected over the last few years.
I know of one that was majority OI in the options and lost something approaching 100MM in the options alone. I think he eventually got out of the shares profitably.
Apr options should trade tomorrow. If their IV is toward the 150% of JUne rather than up in the 200's, you might be able to construct a double diagonal of sorts that captures IV contraction and isn't whacked too hard if the short strikes are breached.