3SOF

Hi,
I am invested currently in many stocks and one of them is NKTR. As I fully comprehend stock prices and evaluation with technicals, I am trying to understand options.

for starter like me, can anyone explain what does puts and calls for NKTR say short term and long term for its stock price trend. Its the most weird stock I have owned.

Thanks,
Dhiraj

Hi Dhiraj,
I'm not seeing anything strange and interesting in the options. The IV is always between 40-50. I'm not seeing any huge buying interest. I guess that tells me that nobody expects anything to happen any time soon. I don't know anything about the stock/company. Unless you know of some catalyst that will make it move, I think I would steer clear of the options.

As far as the stock goes ... looks like it needs to stay above 12.40, otherwise you might be looking at a double top over the last year. It's right in the middle of it's 1 year range.


Why do you think it's a weird stock? What do you like about the stock?
Good luck to you!
-Samantha

Nektar is company with 400 million cash.

The company has partnership with Pfizer for exubera inhalable insulin ( which you must have heard everywhere).

It was approved last year and Pfizer hasnt been pushing it too much but maintains it to be their future blockbuster. They are doing training and education but not fast ramp up. Nektar's future lies with success of this drug to be viable and then other drugs in pipeline to be hit... Its one hit wonder which can skyrocket it and keep it there for further launches but hasnt until now...

Hey,

I buy all most stocks via options which have out year potential except for "3 stocks on fire"....stocks on fire are short term plays...

NKTR is one I have and I purchased the Leaps "09 this gives Nktr  to build once PFE gets off its butt and pushes its new inhalable insulin, NKTR has the patent (FDA approved) that admins the inhalable insulin...should be a block buster...expect in the 50's by 2009...IMHO


[/quote]

I expected it to be in 50's by 2h07 and split at 100 in 2008 and then at 100 in 2009 and 2H09 another split...

Its called day dreaming...

I hate myself to sell AMT (1.80 purchase and sell at 2.50 in 2003) and ERICY, RHAT another one ( purchase in 2003 and sell in 2004).. Look at these...

Why patience and impatience both dont pay...

Good luck

With all that ... then I would either play the stock ... or play the future options ... like buckshot46  suggested ... the 2009 options might be your best choice. I think I would steer clear of buying the near options because it doesn't look like anyone "in the know" is expecting a move soon.

Because near term options really need a catalyst ... and hope is not a catalyst... ... leaps might give you some nice ... um ... options! If it takes a turn for the worst, you could take a smallish hit and sell the theta. If it sits around at these levels ... you could sell calls on your calls in a calendar spread. Or sell one strike above your calls ... let's call that a vertical calendar spread... out of the money... month after month until you start seeing some interesting changes in the Greeks. I wouldn't just buy calls in lieu of the stock if there isn't any interest in either ... and no current news. With options, you need to be right quickly... otherwise your daily option value decline will just pick away at you... like water torture.

Keep support and resistance in mind ... you're at critical levels. OH ... and sure things never are that. I've collected a couple lessons learned in "approvable letters" ... which seems like a complete oxy moron to me.

OK ... that's my piece ... not having a handle on your stock ... just a cursory glance at the options.

-Sam

Because near term options really need a catalyst ... and hope is not a catalyst... ... leaps might give you some nice ... um ... options! If it takes a turn for the worst, you could take a smallish hit and sell the theta. If it sits around at these levels ... you could sell calls on your calls in a calendar spread. Or sell one strike above your calls ... let's call that a vertical calendar spread... out of the money... month after month until you start seeing some interesting changes in the Greeks. I wouldn't just buy calls in lieu of the stock if there isn't any interest in either ... and no current news. With options, you need to be right quickly... otherwise your daily option value decline will just pick away at you... like water torture.

SAM....you words show truth towards the whims of option trader but I take the pain further in that I prefer to use them with biotechs for the bigger bang in the future...NKTR loss its chance for a near term catalysts because PFE did not show great upstart sales with its new drug "EXUBERA" (which is administered with NKTR application device) during PFE earning conference.  This device is key to NKTR future...

YOU DIDN'T ASK BUT....a stock waiting for FDA approval on its cancer treatment soon will be a bigger gangbuster in the cancer treatment but its a one horse show if it fails then its atmost penny stock instend of 100/sh....DNDN look at the research, FDA soon as its on fast track review....

OK ... it's Thursday night ... that's TV night ...survivor... supernatural & SMALLVILLE!!!! .... with wine. I KNOW I have a response to this ... I just can't type it.

PLEASE HOLD... till tomorrow. ;+)
-Sam

I again have same request as I saw some activity on options page for Nektar.  NKTR

Currently my request is for May 2007 options and forward.

Can any maestro  here give me an opinion of what options are trending ( Bullish or bearish) in various time frames.

Example: For Jan 08 it has 35.00 interest open too. Does that mean, the stock will rise to 35.00 in Jan 08?

Thanks,

Quote from: dhiraj19 on March 29, 2007, 11:43:31 AM
I again have same request as I saw some activity on options page for Nektar.  NKTR

Currently my request is for May 2007 options and forward.

Can any maestro  here give me an opinion of what options are trending ( Bullish or bearish) in various time frames.

Example: For Jan 08 it has 35.00 interest open too. Does that mean, the stock will rise to 35.00 in Jan 08?

Thanks,

option interest is the number of calls/puts open on that particular strike price.  I think it would be prudent for you to get an options book or go to 888options.com or cboe website or optionetics.com to learn some of the terminology. optionpundit.net i think is great too.

Hi Dhiraj19,

I totally apologize for not getting back to you.

Of all the things I usually look at ... I'm just not seeing anything interesting in the options for NKTR. All of the IV (Implied Volatility)  ... for all of the months is about the same... in the 40s. And since it's across all months, that says to me that the IV is right where its supposed to be AND nobody is expecting anything strange and interesting to happen.

Also ... if GE is in like the 20s for IV ... your stock is in the 40s .... really volatile options can be upwards of 300 IV. So, I'm concerned that you've picked kind of a slow and steady stock ... that nobody is caring enough about to make options work for you. 

The open interest QTY in May seems a bit more than in other months ... But the daily volume (at least from today ...) isn't saying that people are buying it up.

I'm just not getting a warm fuzzy from NKTR. And my concern is that if it doesn't move quickly, all of your Greeks will just waste away.

So my question for you is ... Do you have a catalyst that will make it move?
Why do you like/dislike NKTR ?

And – I think Catrader is right – find a good book and/or check out any one of the sites Catrader mentioned.
Good Luck.
-Sam