I should add the caveat unless it is a hedge or there is a major catalyst during on a weekly, for example, August 28 weeklies.
Highly unlikely it was a $1 premium on those puts. Major players don't buy weeklies on a stock with options as illiquid as SRPT except on the week they expire, or possibly at the end of the week before because the spread will otherwise be way too wide. I'd wager those puts were purchased either Monday or yesterday on an uptick day. And guess what? The stock is tanking even further now, so those options are looking to be a nice double or triple for someone. The good news is that there isn't any major open interest on puts next week, so we should have a relief rally early next week, although market conditions could lead to more downside.
While I'm not one for conspiracy theories, I gotta wonder if people working with mountainman--because let's be honest, he's probably not a retail guy--are involved in that large put bet.
Sell everything! Stocks should never go down, and when they do, that's the only time we should pay attention!!!!!!!!! Srpt will never recover. It's only going down from here on out. Everyone, jump out of the nearest window!!
Yes. For the week, SRPT has performed much, much better than IBB and XBI. That's impressive and a good reason not to look too much into today's drop.
Someone on twitter pointed out that there are 1500 contracts sitting on the weekly $32 puts. I'm guessing these were opened within last couple of days. So there's another reason for today's drop. Someone is making coin on those puts. Probably a short who saw the biotech sell-off coming and took advantage. Admittedly, I have to give them props for that. It was ballsy, but it worked.
Or how about this? A fund that is sitting on a 100+% profit decided to mark their books? The market has been choppy all year, and a correction has been long overdue. Cash holding among hedge funds has also increased. This is hedge fund selling for profit. Period.
The same thing is happening to HZNP and BLUE. Both stocks have had massive runs lately and are both are major darlings of Wall Street. Much more so than SRPT. Yet those stocks are getting hammered even worse than SRPT. Because hedge funds occasionally take profits! That's just two examples. If you're going to use the logic that "someone knows something," you're going to need to apply that logic to a ton of biotechs that have had major runs. Or you can use Occam's razor and decide that the most reasonable explanation is the likely one.
That's not the reason for the drop. People like coming up with the most convoluted situations when things like this happen. Biotech is dropping because funds are taking profits to mark their books. August is also typically one of the worst months in the year for stocks. Look what happened last October, then in March, then in April. All had severe biotech drops. Sharp declines in biotech happen on a regular basis. Because funds are selling, particularly those stocks that have performed well. It really is that simple. Money will find its way back into biotech again soon enough. There isn't a more innovative, profit-driven sector out there.
Given that XBI is down 8% for the week, forgive me for thinking you're full of it. Although maybe it's true since you like to boast about your amazing stock picking skills after the fact. Because that's legit.
Maybe you should also point out that SRPT is down just 1% for the week. That handily beats both XBI and IBB. In other words, nothing is wrong. You just need to change your diaper, you pathetic, despicable waste of space.
Highly doubt there is a rumor. Possibly a hit piece on the way, but I doubt that as well. This happens regularly in biotech, even to stocks that are highly loved by Wall Street. Look at BLUE today. Bloodbath, and WS loves loves loves that company. Hedge funds are rotating money and selling off stocks that have netted decent returns for them the past few months. SRPT and BLUE are both examples of stocks that have netted quite a few hedge funds nice returns. So they're locking in those gains as they rotate their money into other sectors looking to rebound, such as energy.
The good news is that after the biotech sector bottoms, it will create quite a few nice buys, and we'll probably see springboard action. So have cash ready. (And for the record, I'm not convinced today is the bottom. Might have a relief rally next week, but won't be surprised to see IBB hit 340s before the bloodshed is over.)
Um, common sense??? Given that everything in biotech has been getting absolutely pummeled the past two days, what did you expect? It's called money rotation. It happens every year, but of course, you know that. You just enjoy creating panic for those who don't know any better.
Let us know the other 20 biotech stocks of yours that are in the green. Thanks in advance.
Biotech getting annihilated across the board this week. Today just happens to be SRPT's turn. Once biotech footing again, it'll be all good.
Funny how you only post when the stock takes a beating.
You do realize your posting literally has no effect on the share price, right? I get the feeling you actually think that it does. If the market wants to take a stock down, it'll do so regardless of some meaningless YMB poster. Most of biotech had their turn yesterday. Today it's SRPT's turn. That simple.
The only thing your posts might be effective at is scaring a few retail shareholders who don't know any better into selling. Not entirely sure that's an admirable thing. I mean, seriously, you're kind of a dck.
Anxiously awaiting your posts after the positive Adcom panel review...
Best of luck to you, Chris. Wash U is an amazing school, and the doctors coming out of it are some of the best in the country. Almost makes me wish I still lived in StL. Treat yourself to a beer at Blueberry Hill once you get through those first two months!
Man, I'd love nothing more than to see that. But I will say that similar situations have occurred before. I'm thinking of ARNA and VVUS if I recall correctly. Had back-to-back Adcoms, but PDUFA one month apart. FDA approval was still delivered on each company's respective PDUFA date. However, DMD is an altogether different beast from obesity, so I have no problem being cautiously optimistic about an early nod from the FDA. I just wouldn't buy OTM January calls based on that optimism.
Agreed. Both points were well understood by the market. #2 gave us a couple of more catalysts to work with, and given that this news is being held for a later date, I gotta think it's good news. If materially different from previously known data, I think the company would release it sooner.
An early approval would obliterate shorts. If that happens, I think we'll see at least a 100% pop on that approval. Because the market surely won't be expecting this, and it will signal the FDA's belief that etep is the superior drug. Hope it happens.