RobinHood race from $2,500 to $250,000

[finnski1]

I had an order ready to submit at open this morning for 5000 share of IBIO. My manager gave me a call, and I had to run to a site as an emergency. I just got back home to my laptop, and see it's now up over 25%. Lovely.

Obviously you don't want to see todays price either
I missed it myself

 

[Speed Racer]

Obviously you don't want to see todays price either
I missed it myself

I opened up a very small position this morning and it's already up 20%.

 

[sirsavesalot]

What do you guys think about ONTX?

 

[Makgeolli]

Fermion,
Do you have August covered calls for ITCI? Thanks for sharing your adventure with us. I hope to learn from everyone on this post!

 

[Fermion]

Fermion,
Do you have August covered calls for ITCI? Thanks for sharing your adventure with us. I hope to learn from everyone on this post!

Not yet. I was looking at them today. Looks like you can get about a $5 premium on at the money calls at $23, so that would be a 1 month profit of $5/$18 = 27%

Downside you are protected to $18 before you would lose any money on the investment.

There was some activity a few days ago on the August $15 puts but I really don't see a good case to make for it going well below that level with the current cash on hand and pipeline. Never know though.

 

[Makgeolli]

I bought at $22.48 and sold 25CAug21@5.25 last week. Just one contract since I’m learning. I had to look up what covered call was after reading your post. Lol.

 

[Fermion]

I bought at $22.48 and sold 25CAug21@5.25 last week. Just one contract since I’m learning. I had to look up what covered call was after reading your post. Lol.

LOL

 

[Fermion]

Ok, I got back into a August ITCI covered call play.

This is more dangerous (exciting?) because it will encompass an earnings, which I think might miss a bit because of COVID.

The call premiums were juicy though, with a $24 August 21 strike selling for $4.4 with the stock at $22.

So a net debit of $17.60 and a potential profit of 36%, or $12,800 with $35,200 at risk.

Who knows, it might go sour this time.

 

[Makgeolli]

Fermion,
Was there a reason you picked $24 call instead of $23 call?

 

[Fermion]

Fermion,
Was there a reason you picked $24 call instead of $23 call?

Yes, for some reason the $24 call had a tighter bid/ask spread and was trading near the price I could get for a $23 call, so it made sense.

 

[bobandsherry]

Yes, for some reason the $24 call had a tighter bid/ask spread and was trading near the price I could get for a $23 call, so it made sense.

Yeah, the $24 has been a favored call, it did move to $25 for a day or so last week. $25 is juiced a bit for the Sep call. Hoping to see earnings give ITCI a little bounce as last month hasn't been favorable. I'm hold $24 and $25's for Aug, but only 1/4 your investment. Hope we both see ours called

 

[Fermion]

Yeah, the $24 has been a favored call, it did move to $25 for a day or so last week. $25 is juiced a bit for the Sep call. Hoping to see earnings give ITCI a little bounce as last month hasn't been favorable. I'm hold $24 and $25's for Aug, but only 1/4 your investment. Hope we both see ours called

Yes you have it right. $24 was a favored call.

I recognize I am being extremely greedy here and this is what usually bites me in the butt. I not only have the 2000 shares/20 short $24 calls in my taxable account, I also have 1000 shares/10 short calls in Robinhood this time.

I console myself with the fact that they have ~$400 mil in net cash after debt, an approved drug, and several good drugs in the pipeline. The offering at $29 earlier this year which raised a good amount of cash is also reassuring. I have had pretty good luck buying bios at a discount to recent offerings.

I am always prepared though for a 50% haircut. That would be about $11 a share in the worst case but I don't see it staying that low for more than a few hours or a couple of days. At my covered call price of $17.60, that would be a loss of $6.60 x 3000 or $19,800 if I had to sell for some reason. On the flipside, if they trade above $24, I make $6.4 x 3000 = $19,200.

If they just stay flat, which might be likely, I make about $4 x 3000 = $12,000.

We will see how this turns out in less than a month! Maybe they will get bought out next week for $40 and I can exit early!

 

[brokrken]

OK, guys, just joined the party. Net debit $17.80 on the $24 calls

 

[Born2Fish]

Late to the party...Net debit $17.85 on the $25 calls.

 

[brokrken]

Late to the party...Net debit $17.85 on the $25 calls.

Nice, did better than the rest of us!

 

[Fermion]

Late to the party...Net debit $17.85 on the $25 calls.

Nice, you went out to the $25s.

I probably would have been tempted to sell a lower strike than that with the stock trading near $21, to try and limit my loss if things go south. Maybe the $25 had good premium though, I didn't check today.

 

[Born2Fish]

Nice, you went out to the $25s.

I probably would have been tempted to sell a lower strike than that with the stock trading near $21, to try and limit my loss if things go south. Maybe the $25 had good premium though, I didn't check today.

Good point - I considered a lower strike play but went with $25.

I only have 400 shares at risk, so if share price tanks to $11/share after earnings miss I'm down about $2800 from my net debit after premium. I don't need cash right now so I can wait if needed.

I'm hoping that price remains fairly level or recovers after earnings and I can try the same strategy again next month.

We'll know soon enough!

 

[Makgeolli]

Fermion,
Have you heard of a gene therapy company called Advernum (Advm)?
It’s been running phase 1 and phase 2 trials on single injection gene therapy for wet AMD and Dme.

So far the studies seems to be showing pretty positive results. The company has a plenty of cash ($297M) and a little debt.

I read they were partnering with Regeneron but can’t seem to find any more info on that. Right now, only wet Amd treatment seems to either monthly or every two monthly eye injections. I would like to hear your opinions on the company. Thx!

 

[NgineER]

What a stroke of luck. I bought back into SGMO yesterday, 500 shares and today the announced a collaboration with Novartis. Stock up close to 15% this morning.

*Sangamo Therapeutics shares are trading higher after the company announced a global collaboration with Novartis to develop genomic medicines for autism and other neurodevelopmental disorders. Sangamo will receive a $75 million upfront payment and is eligible to receive up to $720 million in potential milestones.
Benzinga

 

[MuirWannabe]

What a stroke of luck. I bought back into SGMO yesterday, 500 shares and today the announced a collaboration with Novartis. Stock up close to 15% this morning.

*Sangamo Therapeutics shares are trading higher after the company announced a global collaboration with Novartis to develop genomic medicines for autism and other neurodevelopmental disorders. Sangamo will receive a $75 million upfront payment and is eligible to receive up to $720 million in potential milestones.
Benzinga

Thanks. I was just looking earlier for news on SGMO as to why the big up day. Couldn’t find anything.

I bought in about a month ago for 3400 shares at $9.05. Went up very well. But had a huge drop yesterday. So the big up day today is nice, although it’s been a wild ride.

 

[Fermion]

I bought 3000 shares of SGMO in taxable yesterday for $10.20 and sold them today for $11. Didn't catch either the low or the high but I am ok with that.

At this rate I am going to be stimulating the IRS again. I already sent them a $15,000 stimulus check earlier this month.

 

[MuirWannabe]

SGMO is way up today. At 52 week highs. Wondering if I should sell or keep riding it?

 

[Speed Racer]

I think there's a lot of room for growth still. Having said that, I got cold feet before today and got out after taking a quick ~10% profit. Wish I would have stayed.

 

[Fermion]

I have enough risk right now with my ITCI covered call play. August 10 is the date for their earnings so we will see if lady or the tiger.

 

[Born2Fish]

Fermion - GILD < $69/share. Good time to nibble?