thomberg1201 7:48 am on Tuesday, August 2, 2016

SRPT saw a trade at…

SRPT saw a trade at TT on this ticker. Premium seems to be really high, scary high, temptingly high…

fuzzballl 7:59 am on Tuesday, August 2, 2016

What trade did the do?
- thomberg1201 8:08 am on Tuesday, August 2, 2016
  
  sold an Aug 19 26 call for 5.30, stock around 24-25 dropping today
  - fuzzballl 8:09 am on Tuesday, August 2, 2016
    
    Naked call I’m guessing?
    - thomberg1201 8:40 am on Tuesday, August 2, 2016
      
      yes
- fuzzballl 8:08 am on Tuesday, August 2, 2016
  
  Looks like your typical biotech waiting on the FDA…maybe sell some puts or spreads down around 10? Premiums are scary crazy!
  - thomberg1201 8:33 am on Tuesday, August 2, 2016
    
    I have found they are waiting on a decision on a drug for muscular dystrophy. A competitor’s similar type drug was given a setback by the FDA. There have been unusually large numbers of put action last week and a large number of calls today. I was even thinking about selling calls in the 40s or so.
    - fuzzballl 8:38 am on Tuesday, August 2, 2016
      
      Thanks! Figured it was something with a drug approval.
      - thomberg1201 8:41 am on Tuesday, August 2, 2016
        
        I have been on the wrong side of those-they can be brutal
        
        fuzzballl 8:43 am on Tuesday, August 2, 2016
        
        Yes…CLSN still fresh in my mind and that’s been a couple years. I’m looking at some stuff like 2 or 3 wide put spreads down in the 10-12 range for Sept. Not a lot of liquidity though.

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