CHMA - PDUFA by June 26, 2020 | Biotech Swings 👨‍⚕️💉

Maverick 21:14 PM - Jun 24 2020

CHMA - PDUFA by June 26, 2020

CHMA - currently 6.43 (June 7)
• O/S 42M
• OK on Cash (+getting payments)
• Optimal Acromegaly PDUFA date June 26, 2020
• Calls could be nice on this one…

Comments

Maverick - 3 years ago

As noted at the bottom, I'm out of this one now with small profits.

Stock was halted for a few hours on Friday pending news, FDA approved it, unhalted, went over 7.50 for a few seconds then down to 5.25 or so to close at 6.08.

Screen Shot 2020-06-28 at 23.03.40.png 48.28 KB

ProfofPump - 3 years ago

The Delta on the $5 July calls for this one are nice but whew the volatility. Watching tomorrow to see if the price comes down more

samosa - 3 years ago

Yeah I like the $5 calls here too. Such a tricky spot to enter with data right around the corner

Maverick - 3 years ago

There was volume on that option today, finally. Never saw it hit the bid at 2.00. Range was 2.06 to 2.40.

Offer is currently 2.20. I might be tempted on Friday morning if the data hasn't come out yet.

Maverick - 3 years ago

This hit 7.30 yesterday. Didn't sell....

Maverick - 3 years ago

My average on this one is ~6.50.

They had a CRL once, so it's a quite risky to hold into June 26. I wouldn't be surprised to see the stock halted all day on June 26 and news out that evening.

Maverick - 3 years ago

End result was selling on Thursday (didn't hold for data) at 6.78. So, minor profit. I was disappointed there wasn't more of a run here. They do look like they've really got something.

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Created By:	Maverick
Created:	Jun 25, 2020
Total Followers:	5
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The strategy here is simple: take 3 to 60 day positions in biotechs that have upcoming catalysts (data readouts, approvals, etc).

Offerings are the major danger, so always be mindful of cash position of the company you're trading.