That system has worked fine, it protected against a loss, moreover it looks like it earned even the full credit. Aftermarket the spot has fallen to 17.28 (-70.04%) or so, but it is also important to know the new IV's for the 2 strikes as it's important for the PL calc since the option is still valid till Nov 19. Tomorrow we will be able to see the new result better. https://finance.yahoo.com/quote/CRTX/options?p=CRTX This result means the company has not got the FDA approval for its Alzheimer drug product, ie. the study data were not good. My condolences to the poor guy(s) Long @ Call strike 185 See also this analysis of this devastating result for the company: https://www.investors.com/news/tech...es-its-mark-but-there-is-a-caveat/?src=A00220
True, but OTOH the stock was trading at around $120 or so in early August. Still a long distance from there to 185, but comparable to the downdistance of today's aftermarket. Here's an overview with a small 6-month-chart:
For historical research/study here are the Call and Put options of yesterday at market close. The ATM IV's are above 500% and have been above 450% for the last weeks The awaited FDA event (ie. whether the drug will get FDA approval) fell after market close. Btw, at the moment of this writing the stock price fluctuates wild around $16.50.
I've just saved also the current options data, ie. interesting to see how the IVs change after such a big event. Currently for strike $15 (ie. the nearest strike to ATM) the Call IV is about 191% and the Put IV is about 166%. Compare this to yesterday's data(s) above...
Decision Day of an event, f.e. the date on which the FDA decides about approval of a new drug candidate etc. It's an important date b/c immediately after the public release of the decision the stock price reacts accordingly due to the increased buy/sell actions in the market...