I unwound my position today. Good thing, because our first analyst reaction is in, and, of course, it is negative:
>>Cardiome Tgt Cut To C$17 From C$19 At Dundee >CRME
Last update: 8/30/2007 4:04:11 PM
(END) Dow Jones Newswires<<
I'd expect other downgrades tomorrow. The IV on the October options cratered, and that of the December options bumped up. Shocking, huh? Anyhow, we could be looking at a buying op soon, perhaps by selling those December puts, if one wants to face the regulatory risk. Technical traders might look for a high volume range bar signaling a near term bottom. With overall trade expected to be light in front of the holiday, tomorrow's action could be wild.
Cheers, Tuck |
