Regarding option positions for AMRN...
First I'm a late arrival to AMRN. I was attracted by the price action after the release of TLD.
I've invested with options for many years, lost and made significant sums of $$$.
Something that I now do almost exclusively with options is long term vertical spreads.
Consider the following;
Currently the 30 strike for Jan 2021 is $3.30-$3.50.
If purchased break even at expiry in Jan 2021 is ~$33.40 To double your money you would be looking for a price in Jan 2021 of ~$37.00. Max risk is $3.4 per contract.
It's certainly plausible (IMHO) that AMRN will trade north of $30 by Jan 2021. But what I've learned is that my opinion is worth nothing. The big boys behind the scenes can play with any stock.
Instead look at long term vertical spread.
The Jan 2021 30/25 call spread has a midpoint of $1.58. Let's assume that you can purchase this for $1.65. The break even for this spread at expiry is $26.66. You double your $1.65 risk at ~$28.20. Max profit occurs if AMRN is above $30 at expiry. Max profit is $3.35 for every $1.65 invested. 203% profit.
If there is a buyout @ $40 or more the long $30 call option has a great return. However, if we GIA and the price is manipulated then the vertical has a much better chance of being profitable.
I'm actually hoping that AMRN goes it alone and I can do vertical spreads for the next 4-5 years on AMRN as the revenue ramps. Each spread would have a time to expiry of at least one year so any gains fall into the long term capital category. Alternatively, you can find brokers that will let you do the vertical spreads in an IRA or self directed 401K account.
Cheers.
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