"This test will take months or years before attaining FDA approval."
Why not weeks? I mean, the CEO already has said they expect to begin marketing the test as soon as 09Q2. We all know that a diagnostic test faces a significantly easier road to approval than a drug or a device. So why are you posting that kind of nonsense about "months or years?"
Otherwise your strategy with straddles, though very high risk, is rather sophisticated compared to most of those that post here. But I'm sure you know that.
Pardon the misspelling...I take it that I am correct in interpreting that your response was "yes"...that SQNM is up because of the recent developments in their future business potential. (It was a real easy question to answer, sorry you found it difficult.)
Good luck with your hedging strategy, here are my thoughts....
This stock moves at its own pace and is under heavy accumulation by folks who expect it to triple or quadruple from this point. They are not looking for pullbacks to get in, because if they did that they would have missed good buying oppurtunities @ 8,12,16,20. What should they do if the stock moves to 28, 35, 40?? Continue to wait for that technical pullback that people have been expecting for 7 weeks? I think not .... folks are loading up in anticipation of on-going aggressive institutional accumulation.
The 200-sample study had phenomenal results ... that is not speculation, that is pure fact. HS has already stated that the test will be out as early as June of 09. The results speak for themselves. We are now in a period of institutional positioning and accumulation.