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Nxstage Medical, Inc. Message Board

  • voipshift voipshift Oct 13, 2010 11:52 AM Flag

    Suspicious Call Option volume

    First time for everything right?

    I was sitting there today trying to think about ways to play the earnings for NXTM. I'd like to hedge my gains.

    Then, out of the blue the November 22.5 Call goes through the moon on volume with print that splits the bid/ask.

    2000 contracts! Normal volume is

    If you look at the daily chart for today, I think you can see what happened. Market maker had to fill the call orders, so he covered by going long on the stock to reduce delta.

    I'm not 100% sure on this, but either someone who is long wrote a crap load of calls or someone just placed a 200,000 share bet that earnings will be hot.

    Cool right? I'm thining of picking up 50 Nov 22.5 calls just to see what happens!

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    • Where you able to buy those call options? Huge spread between bid and ask .55/.90.

    • Bummer.

      My response was lost.

      Perhaps I'll try again tomorrow.

    • Dave,

      With margins improving, and the company seemingly being right on the edge of profitability why would you completely sell out of your shares? Do you think it's just come too far too fast? I'm not saying bet the farm, I've reduced my holdings, and my average cost is around $5 so it may color my perception, but why not let the "free shares" ride. If the conference call is crap you'll take a hit but I doubt it will get knocked down to $12. There is still a lot of potential upside here. I'm not questioning your trading skills in any way, I'm sure you have had more investing success than I have, I'm just wondering what problems you see that I don't. Are we not closer than ever to being a profitable, industry respected company with a great product and a growing customer base?

      Anyway, good luck with everything I'm off to gamble on XING. LOL

    • Wow - I was gonna sell my last shares. I may write covered calls instead.

      Hardly worth it, but still.

      My cost basis for my last shares is less than 12 bucks.

      My cheap shares I sold when they doubled and tripled.

      Still a great product.

      Still no earnings.

      Mgmt still rewards themselves VERY well.

      It's been a great run.

    • those calls went thru at about 11:16 and were closer to the bid price so I suspect someone sold calls. I think the price was .60 per call. you can call your broker and ask him to look at the tape to verify.

      • 1 Reply to rklev4
      • Yeah it was more like .75 I saw it go through.

        So wow....someone out there is either long 200,000 shares and wanteded a hedge, or someone new popped in an took 2,000 without the long NXTM.

        And...I will add to the group. Here in New England, the state of renal care is bleak. I spoke to a friend who is in the space. You can FIND a care unit, but finding a slot is tricky.

        This means that there are more overweight people in the USA than the clinics can keep up with. Which means that home care is a huge alternative. I would think the clinics, under the guidance of say Fresenius, you can wait or you can adopt NXTM.

        These guys are sitting on an explosive stock. Its just a matter of figuring out the best way to play the outcome. Long term its a huge hold.

    • Currently a spread of 45 cents - bid .80/ask 1.25.

      May I suggest that yet again the MM's are theives!

    • Playing earnings is always something of a gamble but that option activity sure sound exciting. Thanks for the heads up.

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