This is a significant gamble but I bought 100 Nov.17.5 calls at 10 cents each so my total investment's not too high compared to what I have already cashed in as profits on Optimer. Also I am sitting on a large number of OPTR common shares which should appreciate nicely with good earnings. A 22% increase is huge but pharma stocks can appreciate significantly with good news surprises. We will see.
Ooooh Nov $17.5s would need a 22% increase in share price to pay off. That is steep for an unknown stock like this. We don't have enough historical data of earnings pops to justify that kind of gamble. the Nov 15s look a lot better. Much more expensive but also they do not have a 100% spread between the bid and ask like the $17.5s do (0.10 bid, 0.20 ask). Not as sassy, but the payout should be almost a lock if OPTR has any kind of decent earnings.
Another 5000 contracts of the Dec. 15 Calls today. The open interest is now 11,550 contracts. These are very large bets that the earnings and sales numbers are going to be excellent.
I'm puzzled as to why the stock is not moving up given the positive option activity and the 2 billion $ sales figures quoted by Biocon. Either Biocon released some bogus information (typo or whatever) or no one has picked up on this fact. If the 2 billion $ figure is correct then the stock price should soar, but that is not happening; at least not yet. I guess we just wait and see what happens Nov. 3rd.
Careful, someone could have written those calls with the hopes that they expire worthless and they get to keep the premium. There are always two sides to options. The buyer and the seller. Me, I'm a holder of a bunch of those Dec $15 calls so I am hoping they go up in value.