AMRN - Stock up from 2.00 a month ago to 2.90. Earnings call on Thursday. What's likely to happen?

Discussion in 'Learn how to trade or invest by asking questions' started by anagoge, Aug 2, 2016.

  1. anagoge

    anagoge New Member

    I hold Amarin, a biotech company. Bought at 2.05 a month ago and has been steadily climbing.

    There's been a lot of positive activity in particular over the last two days, pushing the price from 2.35 to 2.90 which is the highest it's been since October 2013. There's an earnings release this Thursday. Is that usually a good sign to hold onto my shares longer?

    Thanks for your help.
  2. Acstudio

    Acstudio Well-Known Member won penny contest 44x won weekly contest 40x won weekly contest 41x simulator winner 20x

    The implied volatility for the earnings announcement suggests an .80 expected move in either direction. If it were me I would take the money and run like a thief in the night locking in the win and not taking the chance that the earnings announcement is being priced in before hand. But that's just me...I like to lock in winners and sell into strength and buy into weakness and I try not to hold naked deltas through earnings. But hey...if you're comfortable with the risk maybe it works out for you....It's a 50/50 shot from there.
  3. anagoge

    anagoge New Member

    Hi Acstudio, thanks for the reply. I appreciate it! It rose even more since posting my original post. Now at 3.18. I've never been at the forefront of such a leap in price before and I'm a little scared!

    Surely even if the earnings aren't everything investors hoped for, it wouldn't go back down below my original selling point of 2.05? Or do you think there's a chance it might?

    If it went down to say, 2.60, I would be inclined to hold and see if it rises again over the next few months again. I did read a report saying that it could potentially go up to 10.00 in the next two years.

    I'd appreciate more help! Thanks.

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