Panjang

Does a Trader really think ECYT will gain 50% in a Month

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Endocyte, Inc., a biopharmaceutical company, develops targeted therapies for the treatment of cancer and inflammatory diseases. one one to see how much a stock can move is to look at the ATM Straddle to get two Measured Move Targets. The ECYT ATM April 15 Straddle is priced at $6.80 implying the stock can move to either $21.80 or $9.20 by april expiration. Obviously, by the high implied volatility we can tell that their will be a drug announcement in April. One trader thinks the stock can move to $23.25 as we saw a trader buy ECYt april 22.5 calls for $.75.

Their Risk: $75 per 1 lot
Their Reward; Unlimited
Their Breakeven; $23.25

Penafian

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