$heff's $tation of $tocks & $olid DD

[BioHunter]

$TXMD trade

Trading pre FDA notice last week at $8. Options priced about $1.50-$1.75 move post PDUFA. FDA claiming labeling and post marketing questions. Sound like they are reasonably likely to get approval and company needs to provide some more color. Might not happen by May 7 PDUFA. If there were a major issue I think we would've seen a 90 day delay.

So you really are buying the stock with most of the downside priced in at this point and most the upside in front of you. So I see this as 10% downside and 40% upside. I like the risk reward.