GNMX: Bullish Earnings Play

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.

Screen Shot 2017-03-08 at 5.24.36 PM

The GNMX options implied volatility is extremely high – it shot up to 200% before tomorrow’s announcement.

Screen Shot 2017-03-08 at 5.32.35 PM

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.

Screen Shot 2017-03-08 at 5.30.25 PM

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