NVAX is currently expecting some volatility in the near future given by the prices of these options. Here is one with 43 days to expiry with a 46% margin or error! These incredible numbers translates into 15% cash on cash return in 43 days if not assigned! The delta of this option is at 16.44 which means for the writer or seller of this option, you have a...
Elliot wave suggests downward momentum for the past two years, and yesterday NVAX investors got their hearts crushed. Where can it go from here? Based on yesterdays market activity, I see it headed towards the 1.618 retracement regardless of upward or doward movement. so, if it heads further south we could see high 80s but under a dollar, and if demand increases...
Is NVAX in the midst of a Long term wave four, or a short term wave four? If it's a long term wave four, I could see it falling as low as 1 to continue the downward momentum.
Pretty reasonable target for a retracement, with stop loss just below the range support.
Small possibility of double bottoming at 1.17 too! so be prepared for it.
Oct 21th $1.5 CALLS
I figured I'd clean up this setup a little bit on the chart to show what's going on with this trade a little more clearly, since we're running into opex, and I'll have to do something with it here shortly. I also for mapping out what I'm going to do if price does certain things relative to my cost basis and original stock purchase price.
The trade originally...
seekingalpha.com
Bioresearch stock. Fundamentals discussed in above article.
From my standpoint it technically looks good. If stage 3 trials work out should get big jump up. If you ever invested in biotech stocks before you know they often do not do well in final trials.
Personally will use recent daily lows as my stop (horizontal line on the daily chart)....
I already have a covered call on in this little fella, but thought I'd sell some more premium here while I can. I'll either reduce cost basis further in the stock I already have or, push comes to shove, get assigned at 5, which I'm fine with.
Filled for a .68 ($68)/contract credit ... .
I'm already in a similar trade, but NVAX keeps on giving with high implied volatility rank and high implied volatility.
Metrics:
Buy shares at 6.99
Sell Oct 21st 7 call
5.10 db at the mid (off hours; it may naturally look a touch different at NY open)
$190 max profit if called away at $7 (a ridiculous profit figure for a $7 underlying)
ROC: 37.3%
Alternative:...
NVAX got Fast-tracked for its RSV vaccine. Currently theres no approved vaccine. NVAX has been an a bullish run ever since and I was unable to catch it at $4.50. I hope that the stock will retrace to .5 FIB and find support at the 100 Simple Moving Average before the start of the the 3rd quarter.
If it does I will be looking to buy NVAX at this level because...
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...
