Repros Therapeutics, Inc. (RPRX)

[Jonathan Robinson]

No - sorry about that. I mean that they are 40+% out of the money and yet they trade for 3+% of the strike price. That is extremely high. Some bios are higher - think ELN and MNTA and other story stocks - but that number is very, very high. Should probably be closer to a dime and not a quarter.

I would never advocate doing this but one could get a 33% return on equity on this position over 3 months. To sell short those puts (i.e., take a bullish position) would require 75 cents per share or $75 per contract. Your potential return is $25 per contract, or 33%. Your potential risk, however, is much higher at something on order of several hundred dollars if all trials were horrible or if the mkts crashed or some combination thereof - not likely, but still a theoretical possibility.

Jon