Replies to post #379813 on Anavex Life Sciences Corp (AVXL)

[Steady_T]

I just sold Jan 20 $12 puts for $4.90.

It is close to a binary event coming up. Options are reflecting that.

[ignatiusrielly35]

I like that option trade idea. And good job on your pricing. The buyers of your puts are either betting on bad data or they are hedging a long position.

[crescentmotor]

I just sold the December 10 puts and receive $3.30. That seems like an awfully large premium

That indeed is a large premium, but it reflects the reality that a failed trial is expected by the MMs to result in a stock price well below $6.70, which seems very likely under that scenario. On the flip side of that trade, it is going to be very expensive for some folks to hedge their long positions unless AVXL holds off on a PR and the stock price runs up considerably during the month of November.

[123tom]

I wish I knew how to trade options
but I dont.
Best of luck to you. I dont imagine price will plunge that low,unless the market crashes soon.

[WolfofMia]

No December 10 options for AVXL from what I can see.

Did you mean December 16?

Calls are even more expensive.