CYPB PUT ON THE WATCH LIST
Cypress and partner Forest Laboratories said early data from a key Phase III clinical trial showed its drug milnacipran was statistically ineffective in treating fibromyalgia, a condition which can cause chronic muscle pain and stiffness. Despite the results, the companies said they still plan to pursue additional Phase III clinical trials for the drug. Meanwhile, shares of Cypress Bioscience CYPB plunged 57% to close at $5.53.
Our Oct 7.5 put is now selling at $2.10 and in the money. We will be monitoring the position closely for the next few days, hopefully looking for a stabilization of the issue close to the $6.00 price during the next week. If stock should fail to stabilize and then attempts to challenge the downside at 5 area we will be poised to put in a STOP and exit the position.
We will be watching the CYPB position very closely.