NaughtyPines

TRADE IDEA: NVX COVERED CALL

NASDAQ:NVAX   NOVAVAX INC
7 months ago
Thanks to TheBanker and the Biopharma chat room for spotting this one ... . A little bit of research on its implied volatility percentage, and voila, a diamond in the rough, premium selling play ... .

Metrics:

100 Shares at 7.56
Sell Aug 19th 8 short call
Whole Package: $620 debit (6.20 will be your cost basis in the shares)
Max Profit: $170 if called away at $8/share or about at 27% ROC

Naturally, this isn't ideal, since the bottom it put in was way below here. Because of that, I'm doing this small, just in case their Phase III             RSV trial doesn't turn out as stellar             as hoped ... .
7 months ago
Comment: As suspected, the setup wasn't as sexy as expected when NY opened ... . I'll have another look at it tomorrow when I have a chance to price it during open market hours.
7 months ago
Comment: As an alternative to NVAX, I may go with PGNX; it has a more diverse pipeline ... .
7 months ago
Comment: Finally took the plunge and filled this one today for a 6.40 debit. My only concern is that this company is basically a "one trick pony" with their only item in the pipeline an RSV vaccine in Phase III.

Related Ideas

Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out