Call Activity is Heating Up on this Wild Biotech Stock (SRPT)
Shares of Sarepta Therapeutics (SRPT) are trading lower on the session by 15.65%, at $37.90. The stock has been on a wild ride over the past few days, yesterday popping some 200% on positive news regarding the company’s Eteplirsen treatment.
Trading at just $4.50 at the beginning of the year, shares have been gapping higher all throughout August, September, and October. One trader is betting that there is still move to run, though… a LOT more room.
Earlier in the session, the November $40/60 call spread was purchased roughly 2,300 times for a net debit of $6.85. This is a $1.5 million bet that shares of SRPT will rally at least 24% over the next eight weeks. The max profit on the trade will be taken down if shares trade over $60 at expiration, when the spread will be worth $20, a 191.9% return.
Not surprisingly, implied and historical vol have screamed higher these past two days, registering 220% and 388% respectively. This is up from 89% and 78% back in late-August.
Sarepta Therapeutics Inc., formerly AVI BioPharma, Inc., is a biopharmaceutical company focused on the discovery and development of ribonucleic acid (RNA)-based therapeutics for the treatment of both rare and infectious diseases.
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