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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: gcrispin who wrote (22773)	12/18/2005 12:59:54 PM
From: CapitalistHogg™	Respond to of 78751

I checked out the option premiums of ZGEN and unfortunately they do not correlate with the premiums of VASC...however, that is not to say they won't eventually correlate and/or that the their is some other type of arbitrage set-up with the common or that the market doesn't care about ZGEN and only cares about the impact ZGEN's drug has on VASC. On the surface ZGEN's rhThrombin sounds like a huge threat to VASC's market cap, but I'm not a biotech guy, I'm analyzing options to find event related set-ups for pair trading arbitrage. At what stage is the progress of ZGEN's rhThrombin? ie Phase I, II, or III or something else entirely? What are the analysts saying about timeframe of ZGEN next biggest milestone? I would start getting real excited about this situation if I saw that the Rate of Change in Implied Volatility of ZGEN started to rise beyond it's 52 week high. For me that would be the tell all sign that this event is related to these two companies... For now, though, this seems to be the best explanation of the unusually high premiums of VASC. Thanks for the post!