this is a good trade that takes advantage of the huge premiums. My feeling is this: a negative 6/15 ruling is priced in. The FDA in its eminent wisdom won't entirely trash the device, but certainly won't embrace it. The resulting price action makes a $22-$26 range seem reasonable. If they pull the rug out (a la GNTA), you get to keep the spread. thx for the post.
I don't think the negative outcome from June 15th meeting is priced in the stock ... the stock will in the $10 range if the panel does not recommend approval. However I believe the stock will run up between now and Jun 15th meeting. Good time to buy calls now and puts when and if the stocks runs up.