Ticker - $ISEE
Wanted to bring awareness to a ticker I found thats trading below 10 dollars currently with options trading at 450+% IV with the stock price barely changing. Potentially easy covered call selling on this one and am going to be trying it out on monday. At 9.75 a share a 9/16 10c is trading at 4.40 on the ask side.
Pretty easy return if anyone is interested in this kind of play.
Be careful with these oddly weird options pricing. Last time someone on this server observed this behavior and sold a contract thinking it was easy money, the underlying moved over 50% overnight and got assigned within the week.
Pharma company? I can see what it’d have high IV then, it was $13 just this past week. Could investigate for a play in general though here?
Well, I couldn’t help myself. I picked up shares at 9.81 and sold a 10 call for 4.10. I didn’t really see much downside here. Sure if it drops below 5.81 I lose but I don’t think that’s likely. I’ll keep u posted on how it works out. Thanks sluzzo
I also got 100 shares at 9.75 and have sold a 12.50c, if those expire and the IV is still high I might go up to 200 and increase and milk this
This seems really strange to me that IV is so jacked so started looking at the OI and there is a moderately decent amount of OI up the chain even. Looks like some kind of Biopharm company is there some drug that’s in FDA process ? It’s traded I’m small range for months now. But one would think there was a reason for so much OI.
That’s what I find super interesting about this, the stock barely moves but call premiums are jacked to hell, i can’t find much about any new FDA stuff on their website
Yeah I was just on there no PR no pipeline info. Strange. Might read some more into this. There has to be a reason to have the IV jacked and decent amount of OI.
I am certain my 10c will be called away but the 4.10 premium was my target. I’m sure I’m missing something cause there’s no free lunch but I can’t find it
Hope you all make money. I was more trying to find back story to see if there another play. If I find anything noteworthy. I’ll be sure to let you know.
It’s almost better if it does get called away no? Correct me if I’m wrong but if you get assigned you can just re buy the shares and collect again? I’m fairly new to CC’s
Thanks, I’m still looking and will do the same
With premium worth over 40% of the initial investment, hell yeah it’s fine to get called away. I guess traders are expecting some kind of FDA approval imminently for IV to be that jacked and with no other catalysts like ER coming up.
If you don’t get called away, your cost basis is incredibly low and it would take a 50%+ dive for you to be red on your shares
I mean best case is it trades above 9.81 and below 9.99 till sept 16th. But other than it dropping below $6 at that time, it’s a win even when assigned unless I’m missing something. Relatively new to selling cc also
And it hasn’t traded below 9.25 in over a year
It does seem too good to be true, eh? I personally don’t see the reason for the premiums to be so high but I also don’t play pharma/FDA approvals at all. Weird that options premiums are skyrocketing but the underlying has so little movement. Just weird all around.
Great job discovering this!
ISEE has phase 2b data coming for one of their drug (Zimura) in the pipeline. This is considered to be a binary event with possible data released this week or the next (sorry no references since I was informed by a biopharam investor).
Well there we have it lol, strange there’s no news anywhere about this
Thanks for helping clear up what’s happening.