$Invesco QQQ(QQQ)$ The options chain for $SELLAS Life Sciences Group Inc.(SLS)$ looks unusual. The Jan '27 $20 calls are priced at $6.20, while the Jan '27 $30 calls are at $4.70. That's only a $1.50 premium for a strike that's $10 lower, which isn't typical for a standard options chain. It seems the market is assigning significant value to upside and pricing in substantial volatility on the longer-dated curve.
This is alongside around 63 million shares sold short, elevated borrow fees, substantial call open interest, and a key biotech catalyst ahead. To me, this combination suggests something significant is being priced in.
For those short, the setup could become costly if their thesis doesn't hold.
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