oconnordavid15

Put Option on ACAD 9/9/19

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oconnordavid15 已更新   
NASDAQ:ACAD   ACADIA Pharmaceuticals Inc.
Bought $ACAD $20 strike puts with expiration on 1/15/21.

I am calling this a short squeeze. Research published today shows Nuplazid as a promising drug for Parkinsons induced Psychosis. Looking into the research paper, they used a "one sided" P-Value test, which negates the reverse end of the gausian curve. I think they are doctoring the study after mortality rates increased from last trial. Drug still comes with this warning label.

P-Value very significant, but I think it is suspicious.

WARNING: INCREASED MORTALITY IN ELDERLY PATIENTS WITH DEMENTIA-RELATED PSYCHOSIS

Elderly patients with dementia-related psychosis treated with antipsychotic drugs are at an increased risk of death.
NUPLAZID is not approved for the treatment of patients with dementia-related psychosis unrelated to the hallucinations and delusions associated with Parkinson’s disease psychosis.

Looking to hold for a week to a month, once the price breaks down. I view this as non news and a short squeeze.

Article doesn't even mention which carriers will reimburse the drug and etc.
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Cost $1.90 As of 9/9/19, looking for 20% potential profit.
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