E****e
发帖数: 315 | 1 Time to load, multiple events in 2011
could more than double from here
Today close @ 2.97 | E****e
发帖数: 315 | 2 BioDelivery Sciences International is grinding higher after a big drop, and
one investor apparently thinks that it will hold its ground.
optionMONSTER's tracking systems detected the sale of 3,000 February 2.50
puts for $0.15 and $0.10. The activity pushed total option volume in the
micro-cap medical name to 375 times greater than average.
BDSIBDSI is down 0.45 percent to $2.85 in midday trading. The stock has been
trading mostly in its current range since going public in 2002 but is
expected to start making money next year as its Onsolis cancer treatment
adds patients. Consensus calls for BDSI's revenue to grow more than tenfold
to about 33 million in 2011.
If that pans out, BDSI could rally because its market cap is about $67
million. That would translate into a price/sales ratio of about 2 times, a
relatively low number for a fast-growing drug stock.
The shares traded around $3.50 in early November before dropping toward $2.
70. They appear to have found support around the same area where they peaked
back in June, which could make some traders think further downside is
limited.
Selling puts is a common strategy investors use for small pharmaceutical
companies because they can earn income even if shares don't rally. In the
case of BDSI, they can drop more than 10 percent without the investor losing
money.
The trade also takes advantage of the company's rich implied volatility,
which is now at about 78 percent. In contrast, realized volatility is about
50 percent, suggesting that the options are expensive relative to BDSI's
propensity to move. (See our Education section) | E****e
发帖数: 315 | 3 Time to load, multiple events in 2011
could more than double from here
Today close @ 2.97 | E****e
发帖数: 315 | 4 BioDelivery Sciences International is grinding higher after a big drop, and
one investor apparently thinks that it will hold its ground.
optionMONSTER's tracking systems detected the sale of 3,000 February 2.50
puts for $0.15 and $0.10. The activity pushed total option volume in the
micro-cap medical name to 375 times greater than average.
BDSIBDSI is down 0.45 percent to $2.85 in midday trading. The stock has been
trading mostly in its current range since going public in 2002 but is
expected to start making money next year as its Onsolis cancer treatment
adds patients. Consensus calls for BDSI's revenue to grow more than tenfold
to about 33 million in 2011.
If that pans out, BDSI could rally because its market cap is about $67
million. That would translate into a price/sales ratio of about 2 times, a
relatively low number for a fast-growing drug stock.
The shares traded around $3.50 in early November before dropping toward $2.
70. They appear to have found support around the same area where they peaked
back in June, which could make some traders think further downside is
limited.
Selling puts is a common strategy investors use for small pharmaceutical
companies because they can earn income even if shares don't rally. In the
case of BDSI, they can drop more than 10 percent without the investor losing
money.
The trade also takes advantage of the company's rich implied volatility,
which is now at about 78 percent. In contrast, realized volatility is about
50 percent, suggesting that the options are expensive relative to BDSI's
propensity to move. (See our Education section) |
|
