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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Vector1 who wrote (4752)	4/24/1998 12:22:00 AM
From: bluejeans	Read Replies (1) \| Respond to of 9719

There is more than a little squeeze (big squeeze)going on. The company has a 5/4 stock split that has created a lot of buying pressure recently. The FDA approval is suppose to be soon also. Yahoo thread probably has more info (stories) than the SI thread. It has moved up a bit the last few days (primarily after the 5/4 was announced). Bob

To: Vector1 who wrote (4752)	4/24/1998 11:10:00 AM
From: Biomaven	Read Replies (1) \| Respond to of 9719

V1, I took a look at the options prices for ORG, and they back up the fact that there is a squeeze. The implied volatility for the call options is uniformly much lower than that for the puts. In other words, the calls are cheaper than they should be, and the puts more expensive. If you could safely short, you (or at least an options trader) could make money by simultaneously shorting, buying calls and selling puts. This is a fully hedged position, you get money for entering into it and you also get the interest on the short sale. (Assuming the "you" here is a big guy, of course. Maybe if you added a zero or two at the end of your portfolio numbers, Fantasy Brokerage would pay interest on your short position <G>.) It is possible that the options market might signal when the squeeze is over. I think ORG was a widely known Sturza short. Peter