IMGN - Calls Bought Ahead of Conference Call

Discussion in 'Options' started by livevol_ophir, Oct 11, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    IMGN closed $7.10 on Friday, with IV30™ up 25% coming into this morning's conference call. The <a href="">LIVEVOL™ Pro Summary</a> is below.

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    The company traded over 16,000 options on total daily average option volume of just 912. All but 1,594 contracts were calls, yielding a 9:1 call : put ratio. The action was in the Oct 7.5 calls for ~$0.275 were cust bought outright. Color from Mike Bristow, Vtrader Group. The Stats Tab and Day's biggest trades snapshots are included (<a href="">in the article</a>).

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    The Options Tab (<a href="">in the article</a>) illustrates that the calls were substantially opening (compare volume to OI).

    Finally, the Charts Tab (6 months) is <a href="">in the article</a>. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue vs HV180™ - pink). The yellow shaded area at the very bottom is the IV30™ vs. the HV20™ vol difference.

    We can see in late August the stock gapped down hard but since then has done a steady climb up. Today the stock is trading $7.75 pre-market on the conference call. The calls bought for $0.275 at this moment, pre-open are worth at least that in parity, so those look like a winner as of right now.

    The Nov 7 calls also traded substantially opening purchases for ~ $0.75. Those could be a winner, but we'll have to see where vol goes.

    This is trade analysis, not a recommendation.

    Details, trades, prices, vols, charts here:

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  2. livevol_ophir

    livevol_ophir ET Sponsor

    Nov 7 calls are a winner too... worth ~$0.95.
  3. rew


    I've owned the shares for some time. It's nice to see they're coming back. The astonishing thing is that I *haven't* sold 7.50 covered calls on the shares. Usually my stocks don't go anywhere until I sell near the money covered calls on them, and then they shoot to the moon.
  4. Love it! Keep up the good work :)
  5. livevol_ophir

    livevol_ophir ET Sponsor

    Ty, Athlon.