CLOSING $ARNA options action trade - scott

17aug - if you are still holding its a max loss.. clearly the trade was for the FDA decision catalyst. like i said below, you had to be really quick on this one, didnt get the pop most people expected.  take at least some off the table right away..enough to get your money back if you have multiple lots.. but rules is rules.. do this goes down as a max loss since the often advertised "constant trade updates" still have not kicked in nor did scott make mention of it via twitter

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31july -  if you were trying to milk a few more cents out of this spread its worth about 10cents now, down about 90% since entry..once you get the catalyst, take profits quick, on at least some of it

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29 jun - if you followed scott in on this trade and were not able to take profits right after FDA announcment then you are sitting on a 50% paper loss.. sucks to guess the direction right but not get the move you were looking for.. stock as made about a round trip right back to were it was when he put the trade on... this spread is going for about .75 now

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23 jun - whats the deal on tonights show?? scott never has a trade to offer up.. always comments on the VIX or on the other guys trades..maybe its his birthday.. so with the lead in of huge options activity on ARNA, scott has a trade, here is the video clip ARNA clip . an FDA decision is coming soon on their fat boy drug like with VVUS and stock has had a strong past few days.. "taking the stairs up and the elevator down".. i dont have a clue about what FDA will announce so any trade i would put on would be a guess. concur with scott that you should pick a direction, so he is putting on a call spread which is appropriate with huge option IV.

buy the Aug 11/16 call spread for $1.50

good low premium way to take a postion. i like the trade setup but will not be following since its just a guess on what the FDA says. all of scotts on-air trades in a google docs spreadsheet

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