This Is What A 8900% 1-Day Profit Looks Like

Tyler Durden's picture

When the lottery tickets are scattered around like this (and mal-investment concerns at record-low levels), is it any wonder the world and his mum is buying Biotech stock options, what could go wrong?

Having traded at $60 yesterday, Puma Biotech (PBYI) is trading at $235 after a successful Phase 3 study into breast cancer made it an attractive takeover target. It appears someone had been buying small odd lots of $100 calls in the last few days (dramatically out of the money) betting on just this.


And they just made 8900% on the trade...

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Vampyroteuthis infernalis's picture

No insider trading here. Move along.........

toady's picture

Exactly. The only people who made money on that one had the inside track. A couple of insider tips like this one and I could jump into the billionaires club.

remain calm's picture

Jelousy will get you no where No one is going to do anything about it. Why even report this stuff. I am happy for the bastard who made a ton of money. He/She hurt no one. Just move along and get on with your miserable life.

icanhasbailout's picture

There's always someone on the other side of the trade, so someone else lost all that money.

barre-de-rire's picture

since when WS players here care the fuck about the guy at the other end of the line...

shit i'm in a warp zone.

icanhasbailout's picture

oh ha silly me I thought the objection to all this mess was the dishonesty... turns out it's merely the vector, hoocoodanode?

power steering's picture

Nothing is more absurd than GoPro

kaa1016's picture

Nothing sinister here. There was event that was known coming out and given the fact that the stock was $143 in late January, buying the $100 calls which were north of $1.00 yesterday (on options that were $40 out of the money with a month to go) is someone taking a shot on a binary event. What's wrong with that?

teslaberry's picture

some assholes are concerned about the 'other guy on the side of the trade'. 


what a bunch of fucking morons. 


there is no 'one' who is hurt. 


the speculative opportunities like this exist AT LARGE,  ONLY BECAUSE OF EGREGIOUS MONEY PRINTING BY THE FED . 


THUS the american public , through savings confiscation renamed as 'inflation targeting' is footing the bill through higher costs of living and higher long run taxation to ensure wall street is well stocked with cash. 

the big bubble shoudlered by the public is the bond bubble anyways, so really, this stock market bubble, of which this one small security is just a pimmple on the ass of an 800 pound gorrilla when it comes to the 'public'. 


power steering's picture

Nothing is more absurd than GoPro

StandardDeviant's picture

Because of Fed money printing?  No.

Deep out-of-the-money calls and puts exist for all kinds of stocks, and have for decades.  Nothing new there.

And biotech stocks are particularly well known for binary events:  Did the trial work or not?  Did the new drug get approval or not?

As for others' concerns about the guy on the other end of the trade:  DOTM options are generally written (sold) by market makers or specialists, who maintain a book of options, are well aware of the risk of a large move, and hedge accordingly (either with stock or with other offsetting options).  Don't cry for them; it's all part of a day's business.

toady's picture

Maybe it is a jealousy thing... it would be great to be in those insider shoes for just a few trades.

Then again, there's a little anger there too. Everyone knows the loss will be socialized to Johnny Taxpayer.

TheLooza's picture

If you were on the inside track in any auditable way, I think you'd be very excited and very nervous at the same time.  

StandardDeviant's picture

It won't be socialized.

First, look at the volumes on the bottom graph.  A nice day for someone, a bad day for the counterparties, but hardly systemic risk.

Second, options are cleared through the Options Clearing Corp., a central counterparty.  They and their members, mainly the brokerage firms, make sure everyone maintains sufficient margins, and they have a clearing fund in case a member firm goes broke.  (You can read about it here.)  Even the collapse of MF Global didn't break the OCC; in fact, they didn't have to touch their clearing fund in that case.  So the taxpayer's definitely not on the hook for this one.

maxamus's picture

Are you happy if it is an insider that knew this news was coming so he made money illegally?  Are you happy if it is a politician or someone within the FDA that knew this was coming?

Stoploss's picture

Boy, talk about smokin' the shorts!!!

Is the building on fire too??

EscapingProgress's picture

The is nothing immoral about insider trading.

DeadFred's picture

Weeklies on SPY to catch the 20% drop that closes the market pays several time more All you need is a good crystal ball...

Grande Tetons's picture

The ole 89 bagger. Mine usually work in the opposite direction. 

NoDebt's picture

Take THAT, BitCoin!  Ha!

Oh, jeez, now I've done it, haven't I?

Pladizow's picture

I thought the "ole 89 bagger" was a geriatric dating site?

dvfco's picture

I thought it was good Scotch.

Al Huxley's picture

Nah, bitcoin's old news now - about as exciting as a utility stock.

NoDebt's picture

I know, I immediately regretted posting that.  Like I had spoken ill of the dead or something.

power steering's picture

You picked a bad day to wear see thru leggings

pods's picture

Soon to be indicted QA rep from Puma Biotech can never cash in.


Sudden Debt's picture

And now the secretary who was taking notes during the boardmeeting and left the room early owns the company...

ShrNfr's picture

However, since it is a zero sum game, somebody who sold those calls just got hosed by the same amount.

ghengis86's picture

Meh. Probably some poor guy writing covered calls in his ShitTrade account looking to make a few bucks on the side. But it probably hurts just as much knowing that he'd have made enough to buy a new Winnebago if he'd held onto them.

slotmouth's picture

RIP whoever wrote those calls.

Wakemaker's picture

If they were covered the writer made $40+ a share.

NoDebt's picture

I thought they made peanut butter.

Sudden Debt's picture

same product, different packaging...

Dre4dwolf's picture

And with that volume it will be back down to 50$ by the end of the week.

Save_America1st's picture

yeah, exactly!  that volume is off the charts...literally...there's so little volume it's barely even on there.  I had to zoom in 8900% in order to see that volume! 

SgtSchultz's picture

What a remarkable stroke of luck!!

Soul Glow's picture

There are no bubbles.

- Janet Yellen

Byte Me's picture

Damn, my bet that Oboobo is straight expires today too.

DeadFred's picture

Some bets are just foolish to take.

Byte Me's picture

No, it had comparable odds. Expires midnight NY, so there's still time..

(Is it Triple Faggot Hour today though?) damn. Piss poor strategy if it is.

dontgoforit's picture

So, who's in for 1000 share of Alibaba?  What's the open on that?  and where's it gonna go?

firstdivision's picture

Well we know Steve Cohen didn't make those trades on the 17th.  A good question is who did, and I'd put my money on someone high up the food chain at the FDA or a congressional staffer.

Oldballplayer's picture

Whoever it was thought that his buddies at the lunch table were going to go in on it too.

Now that one douche is holding the bag.

And that is how you get rid of douches at small companies.

alien-IQ's picture

Beats digging ditches I guess....

Dr. Engali's picture

Puma biotech? I thought Puma made tennis shoes? They must be diversifying the business.

NoDebt's picture

You thought it was shoes, I thought it was peanut butter.  Seems we were all sadly and embarassingly misinformed.  

As pennance, we must go memorize the tickers of every pink sheet company.

More_sellers_than_buyers's picture

Probably a Congressmen on a Panel for the FDA.