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Hawk’s Nest

Suspicious OTM Call Spreads Open in Biotech with Attractive Product Launch Story

by | May 17, 2022

Harmony Bio (HRMY) unusually active options with 975 October $65/$75 far OTM call spreads opening. Harmony is a commercial-stage neuro-innovator that develops and commercializes Wakix for the treatment of rare sleep disorders. HRMY has a strong balance sheet and positive operating cash flows, a $2.1B market cap trading 5.6X EV/Sales and 15X EBITDA. Harmony’s myotonic dystrophy indication for Wakix could represent a $700M opportunity. Wakix trends look to be very strong and revenues seen growing 30-40% annually the next three years.