A trader placed a large call spread on GNMX April calls buying 5000 April 5 calls and selling the same number of April 10 calls. This is a new position since volume is way larger than the open interest at both strikes.
The GNMX options implied volatility is extremely high – it shot up to 200% before tomorrow’s announcement.
Should the announcement be positive tomorrow and the stock gaps up over $7 at the open, it might well reach $10 mark. Should this scenario unfold, the trader would turn $700K into $1.7m.