Someone is buying a boatload of January $5 calls. 6,079 traded so far and it looks like most are at the ask. Current open interest at that strike price was 972. Wow!
Not sure what the reason is but the volume today is much heavy than the average volume traded at this time of day. Also, I have been watching the options volume for the past week and there has been much more call buying than puts. It could just be people hoping for something positive or they may actually be something positive on the horizon. Either way, this is very interesting trading in a down market today,
We know for certain that Glaxo will be filing for FDA approval in the 2H of 2016 for the shingles drug which should have no problem getting approved since it is more effective than Merck's which is already approved. This will start giving AGEN nice royalty stream coming in. Also, Glaxo has the option to buyout AGEN which is part of their partnership agreement. This option expires in 2017. Instead of paying AGEN royalties, Glaxo may just option to buy them out. There is a lot happening with this company and it has the potential to really take off.
Not sure if it is price in already as the stock has been trading down at this level for a while. My guess is that the market is waiting to see if it does get approved, which it sounds like it will, and what the pricing will be on the drug to see if it will be competitive in the HEP C market. The CEO said he feels confident they will be competitive so my guess is the pricing will be to the market's liking.
They should just sell to Google assuming Google would even want them. Google is run much better, obviously, and could probably turn Twitter into a much better platform. Plus, it would help them compete with Facebook in online advertising.
The beautiful thing is even if this stock moves up $1.50-$2.50 next week; I stand to make about 300%. I have 35 days before they expire and only risking $500 so I'm not too worried. Just like going to the casino with this bet.
I'm playing the short term call options, November $30. They are cheap and I bought about 50 for $0.10 a piece. There is a good chance they may expire worthless but worth risking $500 if there is some upside surprise in the report. The sentiment is so negative on the company and expectations are low, a beat may be in the cards. Also, they may give info on the spin off.
Again, I'm making a very risky bet but for only $500. If the stock jumps $5 next week, I stand to make about $5,000.
Activist investor would be very beneficial to individual investors/stock price and would definitely "stir the pot". I have a feeling this quarter may be better than expected since the expectations are so low for the company. Also, they may announce the spin off and the terms of it.
It is rather bad for what reasons I don't know. The company kept guidance but it was spun as if it were "light". I don't buy that. With how other cyber security stocks are trading, I'm shocked that this one trades so low as the others PE ratios are much higher and most are losing money. I wouldn't be surprised if PANW or another one came in and bought VDSI.
Sentiment: Strong Buy