NEW YORK ( TheStreet) -- Ziopharm (ZIOP) is expected to release top-line data from its phase III trial of palifosfamide for the treatment of metastatic soft tissue sarcoma during the last week of March. I expect the stock to trade down to about $2 per share on negative results and between $5-7 per share on positive data.
Here's an interesting options trade for this important Ziopharm catalyst:
Buy 20 APR 4.0 strike Calls @ 1.40 = $2,800
Sell (20) APR 5.0 strike Calls @ 0.95 = $(1,900)
Sell (20) APR 6.0 strike Calls @ 0.65 = $(1,300)
Buy 20 APR 7.0 strike Calls @ 0.45 = $900
Initial P&L Call Leg = $500 Debit
Sell (10) APR 3.0 strike Puts @ 0.40 = $(400)
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