It's just an asymmetric +1/-3/+2 fly (I think Cottle calls it a "Buttafucco") at the 15/25/30 strikes.
30-Apr-04 09:43 GNTA Genta lower on FDA staff comments (12.60 -1.83) Stock trades down 12.6% following Reuters report that the FDA staff review says Genasense trial results could be "Falsely positive." (Briefing.com note: Our sources indicate the somewhat negative comments were expected and do not give a good indication regarding approvability).
No prob. Fly was a great way to play this. Limited risk and great R/R ratio. Thanks for the heads up on this one riskarb.
Agenda for the Oncologic Drugs Advisory Committee meeting on 5/3 http://www.fda.gov/ohrms/dockets/ac/04/briefing/4037b1.htm
Having sat on the sidelines and watched OSIP and GNTA, I don't think there is anything now that would persuade me to take a position in a bio-tech. Just pure speculation!
Added some 10 strike put flys for .30 and completed my 15/20/25/30 condor for pennies. So I'm okay if this thing stabilizes here or somehow pops over 16 (unlikely now, I gather). Otherwise, c'est la vie. Oh, and FU Arb!
Is anybody selling out of the money calls? Still pretty high premium. Assuming that the company has to do another trial, it seems to be a pretty sure bet.