RespireRx Pharmaceuticals Inc (RSPI)

[gfp927z]

In2it, I haven't been following the options very closely, but it would be interesting to find out if that large put position appeared suddenly or gradually. Some of those might be covered puts bought by longs seeking to hedge their positions ahead of the FDA decision. A portion could be naked puts bought by speculators betting on a negative FDA decision. Another portion might be associated with more elaborate hedging strategies by some of the PIPE hedge funds.

The November $5 calls might be an interesting speculation, recently trading at .15 cents. If the FDA decision is good and the stock does return to the $6 area, those would be worth around $1, nearly a 7 bagger. If we spike to $7, the $5 call would be worth around $2, and you'd be looking at a 13 bagger. Not bad for a 3 month speculation.