On Tues Feb. 1, Orexigen was faced with a train wreck as FDA rejected their high anticipated anti-obesity drug, Contrave. The stock (OREX) took an immediately hit, opening with a 75% haircut. Readers who took advantage of the advice given in several of my previous posts (1,2,3) enjoyed a large reward from their put options. Take Feb $9 put options as an example, the price spiked from $1.75 to $6.50 after Contrave's rejection by the FDA, representing an incredible 371% surge overnight (meanwhile call options, used to hedge the puts, of course slid from $1.70 to $.0.05)! If you had followed the call/put options combos suggested here, you would have enjoyed the following gains:
Options combo #1 (low risk/reward)
Options combo #2 (medium risk/reward)
Options combo #3 (high risk/reward)
Congrats to those who held their put options through the major decision!!!
Congrats to those who held their put options through the major decision!!!
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