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Hawk’s Nest

Small Cap Biotech Breakout with Unusual High Delta Put Seller

by | Jul 21, 2022

Xenon (XENE) a biotech breakout and unusual 400 January $35 puts sold to open at-the-money today for $6.50. XENE shares have nearly doubled since our positive write-up on 6/22/21.

XENE is a clinical stage biopharmaceutical company committed to developing innovative therapeutics to improve the lives of patients with neurological disorders. XENE is advancing a novel product pipeline of neurology-focused therapies to address areas of high unmet medical need, with a focus on epilepsy. XENE has a $B market cap trading 2.8X Sales. 

JPM recently put shares on its Focus List with a $55 target seeing lead candidate XEN1101 as derisked, set to enter multiple Phase 3 studies in areas of “high unmet need” in epilepsy. XEN1101 has potential to work in both patients with focal and/or generalized seizures with $1B in peak sales in the U.S. alone in the combined epilepsy indications.