Value questions about specific plays

Discussion in 'Options' started by Callwritingguy, Apr 13, 2006.

  1. Does anyone know why Nitromed Inc (NTMD) call premiums are so elevated?

  2. MTE


    What makes you think they are elevated?
  3. well, the stock is currently at 7.34, and the 7.50 call premium is .20 which is a 4.90% return if called which seems to imply quite a bit of volatility.

    I can't really seem to find much news or anything that would support this kind of premium pricing... just wondering if anybody knew anything that I might be missing.

  4. MTE


    IV is high at the OTM strikes, but the ATM IV is about 63% for Apr, 75% for May, 70% for Jun and 72% for Sep, which is normal when looking at past IV levels.