Atyr Pharma WKN: A2PM86 ISIN: US0021202025 Forum: Aktien User: Spottford
Stocktwits trending und reddit bisschen unterwegs. ATYR has the highest implied volatility of any stock in the entire market right now. Read that again. Options pricing shows the market expects a move of 700% BY FRIDAY OF NEXT WEEK. Why? Phase 3 data for the drug Efzofitimod is expected to be released early next week. For the first time in 70 years, this drug could change how doctors treat sarcoidosis and interstitial lung disease. Rare disease, orphan drug, FDA loves the study endpoint. The tailwinds here are strong. On good data, analysts at Wells Fargo place the stock’s fair market value at 5-11x the current prices. If that data hits, the price rerate happens overnight. But there’s more. There’s a committed group of short investors being led by none other than Martin Shkreli. Yes, the same guy who just got his followers to go short on $OPEN. Oopsy. The short squeeze on $ATYR could be massive, and it may take them by surprise. They seem to be only seeing that shorts hold a moderate 29% of shares. Should be easy to unwind, right? But look at the rest of the ownership structure. 70% of shares are held by institutions. A lot of that is locked up in never-sell index tracking ETFs. The rest know what they’re holding, they’re pros and they will be patient. 10-12% of shares are held by high-conviction retail investors who are unusually well educated via the countrydumb and atyr_alpha subs. They also know what they’re holding. And then there’s 3% reported insider ownership. None of these holders will be rushing to save the shorts by selling low. So shorts are likely to get trapped and desperate, offering higher and higher prices as their lenders demand share repayments. How high could this go? We don’t know. But it could very well be just as memorable as $GME. Sure, for the size of the squeeze, but also for the broad base of retail participation. You could see a whole bunch of blue collar investors and redditors becoming sudden millionaires. But this time, they’ll be working together with the institutions. Pretty wild. So what are the odds? The brightest scientific minds, KOLs, and analysts put the likelihood of positive trial data at 65-85%. Those are insane odds for a 5x return. But this is still risky. There’s a 15-35% that your $1,000 investment could drop to $200 overnight. And no, a stop loss won’t save you, since data will be released outside of market hours. If you’re thinking about getting in, be honest with yourself about the risk. I currently own 120,000 shares ($700k) down from 161,000 shares. I recently took a little profit to cover my ass, so I’m riding into this binary on (mostly) casino money. What I’m saying is, don’t be a degen. But if you’ve got some gambling money laying around, give it a look. It’s the most asymmetric bet I’ve ever seen ahead of time.
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