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Biotech / Medical : Biotech Valuation
CRSP 52.48+3.4%10:48 AM EST

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To: former_pgs who wrote (13370)10/6/2004 10:21:38 PM
From: Biomaven  Read Replies (1) of 52153
 
scenarios are relevant to valuation to a degree

Absolutely on point for this thread.

Interesting what you are suggesting - usually people here are on the other side of these straddles or strangles (as rkrw recently successfully was with AGIX).

What's different here is that the imnplied volatilities are very high for a distant maturity - that's very unusual.

If Stellar 3 is a big success, the stock could go above $16 given that right now there appears to be considerable skepticism on the street about the trial (and about the company) and there is a big short position. So that perhaps argues for the buy/write as the better strategy.

Peter
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