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YM BioSciences, Inc. Ordinary S Message Board

  • 5000+ contracts, representing 500,000+ shares, for the October 7.5 calls were just bought.


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    • My interpretation in this case is bullish for the stock... But the details of the trade are the determining factor...

      The keys were the premium, the strike being out of the money and the fact that open interest indicated a large new play not the termination of an old position or churning...

      If this was in the money ($5 calls) the case would have been slightly weaker...

    • You're right. It is unfathomable why the biotech investing institutions are not bidding the stock up, big time. Given that they usually behave like lemmings it is somewhat mysterious how YMI remains so far under the radar. I'd think the risk reward is way in favor of speculative investing.

    • never could understand options. are the 5000 calls agood thing or a bad thing if i am long the stock? thanks to anybody who will answer

    • ....Nice analysis. I'll go with my original impression...A fairly recent new major shareholder selling covered calls going into the "event" data to help hedge his position and to garner a very nice ST upside if the data proves positive.

    • The short position makes no sense to me... the downside is limited and the potential beyond the mid fours we visited would have een a good time to cover a short at 6... paying a dollar for risk aversion at that point would indicate a lack of conviction on the short at this magnitude and therefore the profit in hand would be more attractive...

      The options were not traded... open interest increased on the trade @5000 positions...

      My impression here is that someone long the shares considered the move to 7.50 plus the $1 premium to be a satisfactory return and sold the options to someone that considered the option a strategic play on a sizable upward move...
      win win

      The short at $6 would lose $1 premium and $1.50 on the move to $7.50 (add in the $1 that the position is in the money and the short at 6 could lose $3.50 from the current position he is in, while on a move to zero he could only gain $5... not attractive at all unless you know the outcome of the trials... and if you knew that you wouldn't need to hedge your bet!

    • the option specialist will write the calls to facilitate the trade and will then hedge himself in any maner of ways depending on the movement of the underlying, including buying stock or buying other series of calls, none the less, the purchase of 5000 calls in my mind is extreemly bullish

    • yes, he has when somebody sells to him; but he never initiates a buy himself...

    • +++ option specialist NEVER buys calls +++

      He has to - that's his job.


    • You make good points.

      The short risk reward is probably closer to 3:4 with the margin charges and the missed opportunity costs. I would rather cover here and book the profit if I had a $6 short.

      Your long seller/call buyer makes the most sense, and yes a 5000 contract purchase is not something you just throw on the market. Large bids and asks have been showing occasionally, but not of that magnitude.


    • <<Maybe the option specialist himself on the ask who is short the stock and wants to play more on the downside but limit his upside loss if TES is successful.>>

      i was under strong impression that option specialist NEVER buys calls (or puts for that matter); he's always short on options and uses the stock to leverage risk

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