How To Play Pozn- Fda Annoucement Aug. 1

Discussion in 'Options' started by dstod, Jul 16, 2007.

  1. I'll wait til wednesday to reply to that.
     
    #21     Jul 30, 2007
  2. 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
     
    #22     Jul 30, 2007
  3. nikko309

    nikko309

    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).
     
    #23     Jul 30, 2007
  4. 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
     
    #24     Jul 30, 2007
  5. rcmcfe

    rcmcfe

    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
     
    #25     Aug 1, 2007
  6. nikko309

    nikko309

    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 :)
     
    #26     Aug 1, 2007
  7. 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?
     
    #27     Aug 1, 2007
  8. -44% pre-market. Looks like the FDA knocked it back?!
     
    #28     Aug 2, 2007
  9. nikko309

    nikko309

    POZN is down 9 bucks to $8.60

    Well, so much for understanding the fundamentals of this event.
     
    #29     Aug 2, 2007