ITMN is down 75% in after hours trading. :eek: The put sellers must be kicking themselves right now. I would never sell options on a biotech.
The news was disappointing. I sold some puts and I'll owe up the fact ($15, $12.5, and $10). Unfortunately, it was no DNDN replay for me. Any suggestions as to what the next step is? Take the shares? (maybe not the $15, but perhaps $12.5 and $10 if assigned by May expiry). Darn it. My pre-news worst case scenario was down $20 or even $25 dollars, but not $35!
------------------------------------------------------------ Quote from spindr0: on the internets. ------------------------------------------------------------ LOL. Yep. Dubya coined that Bushism in the 2000 campaign and it has been parodied on You Tube, Saturday Night Live, etc.
If you have reason to believe that it's not going lower, take a look at call premiums first thing this AM. If by some chance they haven't totally imploded (IV not totally in the crapper), you may have some salvage possibilities. OTOH, if you don't have that stable/bounce conviction, take the loss, delete the symbol and repeat: C'est la vie. C'est la guerre. C'est no more.
Interestingly, there was not a huge volatility crush. IV dropped, but not by nearly as much as I would have expected. That could potentially bode well in the sense that people have hopes that it might go up. In fact, when I pull up the OTM IV graph I see a big "U" shape indicating that the IV for calls are quite high. I took some losses by reducing my $15 puts, but am keeping the rest for now.