They Just Don't Get...
MYGN Short
We are not satisified with the science behind Myriad Genetics (MYGN) Alzheimers drug as well as that of Neurochem (NRMX), which is an ongoing short in the Bumblebee Portfolio. If we are correct about the anticipated NRMX trial failure by mid April, MYGN will likely fall by a significant amount as well. Call it guilt by association. We like the May 30 Put at $.40 as well as the $25.00 puts at $.10.
Remember to spend no more than 3.5% of your risk capital in total on the option series, and no more than 7.5% of your capital if you decide to short at this price. A risk friendly trader could decide to buy a 50/50 split of the $30.00 and $25.00 strikes, while a risk averse trader could buy the slightly in the money $35.00 strikes at $2.15.
Enjoy your trading.
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