Well, I pasted my comments on vvus that I made on another board below. Since there is supposedly no decision forthcoming from the FDA until October, I don't understand the high premium in July, but I am sure there is something that I don't know about that will bite me in the rear.... however, I sold some puts anyway. - Jack D.
The news article below says the drug will be submitted to the panel to review on July 15, but no decision until late October. July Optiion expiration is July 17 and I wouldn't think that anything would be decided by then. Why isn't this just a good speculative opportunity to sell some July puts?
Finally, the big news obesity drug investors are all waiting for. On July 15, the FDA's Endocrinologic and Metabolic Drugs Advisory Panel will review VVUS's NDA submitted for Qnexa. The FDA decision is not expected until late October, so there may be time to go back to the drawing board if additional analyses of the existing data are required. http://seekingalpha.com/article/208308-short-squeeze-potential-in-arena-as-vivus-panel-date-looms?source=etrade
Finally, the big news obesity drug investors are all waiting for. On July 15, the FDA's Endocrinologic and Metabolic Drugs Advisory Panel will review VVUS's NDA submitted for Qnexa. The FDA decision is not expected until late October, so there may be time to go back to the drawing board if additional analyses of the existing data are required. http://seekingalpha
On Thu, Jun 24, 2010 at 12:28 AM, Louis <loupi3@yahoo.com > wrote:
Vivus (VVUS), a pharmaceutical company, July 6 puts have a 15% premium (.90). Since the stock is at 9.68 that represents about 47% downside protection (6-.90/9.68)
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The July 5 put is at .50, a 10% premium with about 54% protection.
Obviously a very volatile stock and there are some serious upcoming FDA issues, but these are very interesting numbers.
Any thoughts?
Lou
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