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Amarin: Some Investment Strategies For 2020

Jun. 01, 2020 3:38 PM ETAmarin Corporation plc (AMRN)15 Comments


  • In recent news, Amarin's legal brief has been filed, and generic Vascepa has been FDA-approved.
  • We covered the legal brief extensively in a number of articles.
  • This article discusses some investment strategies for AMRN based on the above developments.
  • Looking for more stock ideas like this one? Get them exclusively at The Total Pharma Tracker. Get started today »

Update: The following strategy article was written around 10 days ago and provided to TPT members. Since then, there has been a single significant change - the FDA has approved an ANDA from Hikma, bringing generic competition closer to the market. This news, in its turn, has had two major impacts - one, the stock has fallen briefly, from near $8 to now a little below $7; however, clarity on the legal front, as we showed in our coverage (here, here and here), seems to have helped the options arena turn more active.

We observe significant changes in option price (upto $0.5 for both call and put options) within strike price of $6 & $8. We may assume investors have become more active and are trying to cover their bullish or bearish positions respectively by buying or selling calls and puts around the current market price.

In addition, more December Call and Put options have been initiated between $3 -$5 in the lower side and $10-$15 on the upper side.

In order to reflect these significant changes, we have updated the entire strategy scenario for AMRN.


Amarin (NASDAQ:AMRN) has a few tumultuous months ahead as the appeal they filed goes through the process. As noted in my previous articles, the timeline is going to be like this:


As we are expecting a judgement in favor of Amarin by late October or early November, we expect remarkable price movement by that time. By considering call and put options dated December 18, 2020, we formulated pay off from different option trading strategies. As we expect the price of AMRN to remain within a range of $3.5 to $18.5 per share, our option trading strategies involve call and put options within a strike price of $3 to $15 (the highest available strike price).

If you want to keep yourself on top of the Amarin situation, subscribe to the Total Pharma Tracker. My focus coverage universe is small, but those few stocks that I cover in depth, I go everywhere and see everything - and TPT subscribers read it first.

This article was written by

Avisol Capital Partners profile picture
Cautious, low key, disciplined investing in biopharma stocks
Avisol Capital Partners runs the Total Pharma Tracker Seeking Alpha Marketplace service. This is managed by Dr Asok Dutta, BVScAH and Dr Udaya Kumar Maiya, MD Oncologist. The service offers end-to-end research on both investing and trading ideas everyday, and includes a 150-stock watchlist and two 40-stock model portfolios that are continuously tracked.

Dr Dutta is a retired veterinary surgeon. He has over 40 years experience in the industry. Dr Maiya is a well-known oncologist who has 30 years in the medical field, including as Medical Director of various healthcare institutions. Both doctors are also avid private investors. They are assisted by a number of finance professionals in developing this service.

If you want to check out our service, go here - https://seekingalpha.com/author/avisol-capital-partners/research

Disclaimer - we are not investment advisors.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in AMRN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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