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BioRunUp Recommended AVNR Options Trade Up Over 116%
publication date: Nov 2, 2010
On Saturday, after AVNR's late FDA approval for AVP-923, we released a 'Member's Only' (link) article on how to trade AVNR on Monday. Let's take a look at some quotes from that article and compare it to what has happened so far:
Quote "AVNR has just received FDA approval, and share prices are expected to more than double, as it was trading in the low $5 range in after-market on Friday. We expect AVNR to open in the $5 range before beginning to sell off."
Reality: AVNR opened above $5, climbing as high as $5.80 before beginning its sell-off.
Quote "Timing is critical when trying to profit from the assumed 'run-down' of an FDA approval. Watch for the approval 'pop' then you can either short AVNR outright, or buy 'Puts' (options), banking on a lower price over the following months."
Reality: The 'pop' to $5.80 occurred almost immediately as it was all downhill from that point.
Quote "We will be watching $5 Puts that expire in December. As the price of AVNR falls, the values of these puts increase. Currently I hold $4 and $5 Nov Calls for AVNR. I plan to unload these on the spike and swap them out for Dec $5 Puts."
Reality: I sold my $4 and $5 calls as soon as possible for a nice profit before immiediately rolling those profits into $4.50 Dec Puts at $.30.
AVNR has behaved EXACTLY as predicted. The puts I bought at $.30 are currently trading at $.65, representing a 117% gain. These Puts will keep increasing as AVNR continues its fall (run-down).
It is information like the article we released on Saturday that makes the price of a subscription worth every penny. For those that have not subscribed yet, click below to subscribe, and enter in the promo code 'members50' to receive $50 off an annual subscription.