Despite its current challenges with approval the companies potential future growth outweigh the current risk.
Paper is short 70,000 DNDN Aug 5 Puts for $0.72. These Puts are worth $.98, so that trader has paper losses of:
70,000 * 100 * (-0.26)= $1.82 Million in losses, however, the trade is not over yet.
My Trade: Buying the DNDN Aug 5 Calls for $0.72
Risk: $72 per a lot
Reward: Unlimited
Breakeven: $5.72
Greeks of this Trade:
Delta: Long
Gamma: Long
Vega: Long
Theta: Short
—
Andrew Keene
President/Founder
Andrew@KeeneOnTheMarket.com