Put Options on MRTX on 5/31/2022

Mirati Therapeutics, Inc. (MRTX) develops product candidates to address the genetic and immunological promoters of cancer in the United States. 

The company develops MRTX849, a KRAS G12C inhibitor, which is in Phase 1/2 clinical trial for treating non-small cell lung (NSCL), colorectal, pancreatic, and other cancers; and Sitravatinib, an investigational spectrum-selective kinase inhibitor that is in Phase 3 clinical trial for the treatment of NSCL cancer, as well as a KRAS G12D inhibitor program, which is in preclinical development.

It has a collaboration and license agreement with BeiGene, Ltd. to develop, manufacture, and commercialize sitravatinib. 

Shares collapsed on Friday after it's lung cancer drug (adagrasib) failed to perform better than Amgen's already approved Lumakras, analysts said. In fact, Lumakras had a longer median duration of response in its pivotal study: 10 months. Twice as many adagrasib-treated patients experienced diarrhea and three times as many experienced nausea vs. those treated with Lumakras. Patients also experienced a sixfold increase in vomiting among those who received adagrasib compared with Lumakras-treated patients, he said in report to clients. Lower share prices are expected.

Last Trade: $39.81

Trading Range: $32.96 - $195.99

Trade Buy 1 June $40.00 Put at $4.00 For a net debit of $4.00 Profit/Loss Analysis Breakeven at $36.00 Maximum profit is unbounded Maximum loss is ($400.00) at strike of $40.00 Closing Summary Sold 1 June $40.00 Put at $0.00

Position closed on 6/24/2022 at price of $0.00 with a -100.00% loss in 24 days.

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