Replies to post #234112 on SwingTrade Member Forum (SWING)

[Rawnoc]

VVUS we think is going to tank this week on FDA rejection of their obesity drug.

This is an informative article on the VVUS obesity drug's approval chance (slim).

http://www.thestreet.com/_yahoo/story/10899419/1/vivus-what-defines-a-weight-loss-win.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

VVUS has a $500 million market cap and is losing money hand over fist. If they get rejected tomorrow which I think the odds are that they will, I think it will crash hard. As such, we have shorted it in the swingtrade portfolio and in real life we have put options to minimize our risk just in case it gets approved in which case it will be a fast monster.