Marc Liu Blog | JNCE - major call buying "way" out of the money - buy on pull back - plus $250 million shelf offering announced | TalkMarkets
President, Capitol Isle Partners
Marc Liu is currently the CEO of Capitol Isle Partners LLC a media consulting business focusing on corporate restructuring and new business development. He is a partner in Information Central, a newsletter content provider and web marketing company. He also serves as a Senior Advisor to Goldmark ...more

JNCE - major call buying "way" out of the money - buy on pull back - plus $250 million shelf offering announced

Date: Friday, March 9, 2018 6:58 AM EDT

JNCE has a major deal with Celgene for $200 million. That said they still retain 60% of their future growth. This setup looks a lot like MYOK. The presence of out of the money call buying adds a little sizzle to an already good story.

In the last several days 4,000 Jun 15 $35 strike call contracts have been purchased for around $5. This indicates the buyers are looking for prices well north of $40 by June.

While they may not "need" funding , JNCE is taking the opportunity to raise funds with the stock price on the rise (smart management):

Jounce Therapeutics registers $250M mixed shelf offering

Mar. 8, 2018 4:51 PM ET|About: Jounce Therapeutics (JNCE)|By: Douglas W. House, SA News Editor 

Jounce Therapeutics (NASDAQ:JNCE) files a prospectus for a $250M mixed shelf offering. Net proceeds will be used for general corporate purposes.

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