decaro

HGEN: log chart of a COVID-related trade

NASDAQ:HGEN   None
Humanigen is due to present major data from Phase III trials at three conferences in mid-March. The stock is in multiple wedges, and a breakout or breakdown seems highly likely.

Shares are currently trending sideways --- in my opinion, as investors await the outcomes of these events.

When it comes, the move is likely to be explosive. Thus, implied volatility is presently quite high. Normally, I would be tempted to sell a straddle. But I think that realized volatility may exceed implied volatility in this case. Just a guess!

I am buying long ATM straddles here with the April 16 expiration. I am also buying shares of the stock on this week's pullback.
Feragatname

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