Feb. 22 at 7:21 AM
$ALDX Most retail traders look at the daily chart and see dead money, stuck in a tight channel since July. But if you look under the hood, the options market is telling a completely different story.
IV Rank is currently sitting at 98%. The options chain is a coiled spring, pricing in an absolute volcano ahead of the March 16 PDUFA.
The play here isn't to buy option.
Entry zone:
$4.85 -
$5.05
Hard stop:
$4.35
Take Profit:
$6.20 -
$6.40. Why here? SEC filings show an active
$75M ATM offering. Management will likely use this run-up liquidity to raise cash, creating a massive resistance wall. We take our profits right before they tap the keg.
Disclaimer: This is not financial advice or a recommendation to buy/sell. I am simply sharing my personal trade plan and mechanics for this specific setup.
