ITMN option expensive

Discussion in 'Options' started by Informed, May 3, 2010.

  1. Informed

    Informed

    Suggest short May at money straddles to take advantage of the high premiums. I predict FDA will approve, but the share price won't move above 50.

    Target price

    Approval 50 (50%)
    Approval with tough restriction or post approval study 45 (25%)
    Request more data but no more new trial 38 or other delay (20%)
    More data new trial 22 (5%)
     
  2. THe may atm straddle is pricing a nearly 20 dollar move in the stock.
     
  3. It always amazes me people think that readers should take positions based on recommendations from anonymous strangers on the internets.

    :confused:
     
  4. Just like DNDN......easy money to be made with those juicy premiums. :D :eek: :(
     
  5. highseas

    highseas

    I've also collected some short OTM put premiums on ITMN. We shall see the results very soon. (I was in DNDN too--hopefully it will be a replay of that: approval).
     
  6. donnap

    donnap

    Halted
     
  7. It's about time. I'm tired of looking at its super charged high IV quotes, trying to find a good hedged position that wins no matter what the stock does

    :D
     
  8. donnap

    donnap

    :D My sentiments exactly. No fills on my orders.
     
  9. WOW. Opened down 39.00!

    Any thoughts on this POS?
     
  10. ouch. bought some at 9.00 for dead cat bounce.
     
    #10     May 4, 2010