IB Options Brief: Medivation, Inc. (MDVN)
Today's ticker: MDVN
MDVN ñ Medivation, Inc.
One week ago today, it looks like one investor put money on the table to secure the right to buy shares in a $17.00 stock for $25.00 each, should the stock jump roughly 40.0% in just under three weeks time. The huge move in Medivation shares overnight blew the lid off the investorís initial call, with the stock soaring more than 130.0% to a new 52-week high of $38.48. Shares in Medivation, a biopharmaceutical company, more than doubled on positive news regarding its prostate cancer drug candidate. The massive rally in the price of the underlying is a boon for investors who are long MDVN call options. It looks like the call buyer last Thursday picked up a block of 4,899 calls at the Nov. $25 strike for a premium of $1.20 apiece near the end of the trading session. At last check, the call options are trading at a premium of $10.65 each. Subtracting out premium paid for the calls, potential net profits available to the investor at present amount to roughly $9.45 per contract.
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Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Interactive Brokers LLC nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
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One week ago today, it looks like one investor put money on the table to secure the right to buy shares in a $17.00 stock for $25.00 each, should the stock jump roughly 40.0% in just under three weeks time. The huge move in Medivation shares overnight blew the lid off the investorís initial call, with the stock soaring more than 130.0% to a new 52-week high of $38.48. Shares in Medivation, a biopharmaceutical company, more than doubled on positive news regarding its prostate cancer drug candidate. The massive rally in the price of the underlying is a boon for investors who are long MDVN call options. It looks like the call buyer last Thursday picked up a block of 4,899 calls at the Nov. $25 strike for a premium of $1.20 apiece near the end of the trading session. At last check, the call options are trading at a premium of $10.65 each. Subtracting out premium paid for the calls, potential net profits available to the investor at present amount to roughly $9.45 per contract.
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Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Interactive Brokers LLC nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
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Equity Options Analyst
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