- Sarepta Therapeutics (NASDAQ:SRPT) is up 6% premarket on increased volume as speculators move in expecting good news from the FDA no later than next Thursday regarding the approval of DMD candidate eteplirsen.
- May 20 options expire today. Heavy buying has taken place in the June 17 35 and 40 calls.
- Bulls need to be cautious here. The likely scenario is a delay of full approval until the company can demonstrate a correlation between increased dystrophin levels and stable/improved physical function (i.e., the 6MWT), which shouldn't take that long to amass the necessary data. A hedge is mandatory in this situation.