Unusual Options Activity On Prothena Corporation

Unusual Options Activity On Prothena Corporation
December 08 03:25 2018

Prothena Corporation plc, a late-stage clinical biotechnology company, focuses on the discovery, development, and commercialization of novel immunotherapies for the treatment of diseases in the neuroscience and orphan categories.

The company is developing antibody-based product candidates that include NEOD001, a monoclonal antibody that is in Phase III and Phase IIb clinical trials for the treatment of AL amyloidosis; PRX002/RG7935 that is in Phase II clinical trial for treating Parkinson’s disease and other related synucleinopathies; and PRX004, a monoclonal antibody that is under preclinical development for the treatment of ATTR Amyloidosis.


In April, shares of Prothena tanked 70% after the company announced that they were discontinuing studies on a NEOD001 to treat AL amyloidosis, a condition that occurs when a substance called amyloid builds up on the organs because it failed in a Phase 2 study.  Shortly thereafter, the company slashed their workforce by 57%.

Prothena announced their quarterly earnings last month.  Prothena reported a net loss of $24.6 million and $133.2 million, for the third quarter and first nine months of 2018, respectively.  Prothena reported total revenue from its collaboration with Roche of $0.3 million and $0.8 million for the third quarter and first nine months of 2018, respectively, as compared to total revenue of $0.2 million and $27.3 million for the third quarter and first nine months of 2017, respectively.

They mentioned their Phase 1 study of PRX004 and the Phase 2 PASADENA study of prasinezumab (PRX002/RG7935) remain on track for initial data in 2019 and 2020, respectively.

Now here’s what you have been waiting for…the price action has been basing for eight months,

but I noticed some serious unusual put option buying taking place and I mean serious unusual option activity.  There was heavy in the money put buying on the December 2018 options that expire in two weeks.


There was heavy put buying also on the June 2019 options as well.

The Smart Money knows something and with the December options expiring in two weeks, look out below.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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