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VIVUS Inc. Message Board

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  • headhunter80904 headhunter80904 Jul 15, 2010 11:34 AM Flag

    VVUS Options Play

    <<what happens if implied volatility goes up because of a positive panel decision?>>

    Implied volatility will not go up. It's there because of all the uncertainty leading up to the decision. Once the panel makes a decision, yea or nay, the IV balloon deflates to near-earth's-orbit levels.

    (I'm playing this partially with calendar spreads all over the board, both puts and calls, selling 700+ volatility in the Julys, and buying 200 levels in the Seps.)

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