One investor apparently thinks that Elan will remain trapped in a range, even with earnings later in the month.
optionMONSTER's monitoring programs detected the sale of 20,000 October 13 puts for $2.30 and 20,000 October 16 calls for $2.05. Volume exceeded open interest at both strikes, indicating that new positions were initiated.
Known as a short strangle , the trade resulted in a credit of $4.35 which the investor will get to keep if the Irish drug maker remains between $13 and $16 through expiration. Gains erode outside of that range, turning to losses below $8.65 and above $20.35.
there are, imo, at least two things influencing the daily price action of ELNs stock price, away from the basic fundamentals and FDA stuff. obviously, those who wish to be 'long' or 'short', 'buy' or 'sell' the stock, esp larger players. then there are some large 'options' positions that are either put on, taken off, added to, 'rolled', delta re-wtd., hedged/wedged etc., which can, it seems come out of no where, to influence the stock price, esp on a low vol day, and the closer to exp dates. this happens w/all stocks that have options but I think more so w/a stock as ELN. it's a big part of it. there are mucho 'premium' dollars hanging out there for some to (perhaps) wish to take advantage of, esp if they wish to define the ranges ELNs stock price will exhibit.
Also, any opinions on Alzheim (AD) research, including genetic, drug therapies and healthcare related topics? I have a personal interest in AD, and I am looking for places to invest there, as well as to bequeth money. Thank you in advance for any advice.
Hi August Broker, You have very logical opinions on ELN, MHP, etc. I agree with most of your assessments. Wish there was a way to team up?? Currently, I follow: ORBK, VECO, PE, GE, AMAT, LEN, PHG, OTEX to name a few,. Looking at MHP (wonder if too fast too soon movement). How about PSO? email@example.com MBA U of C. Consultant 15 yrs finance. Nice guy.