TCDA 9.22.2022

Tricida, Inc. (TCDA) | Options Trade Idea

Tricida, Inc. (TCDA) Overview

  • Tricida, Inc. (TCDA) focuses on developing and commercializing veverimer (TRC101), a non-absorbed orally-administered polymer that has completed Phase III trial to treat metabolic acidosis in patients with chronic kidney disease by binding and removing acid from the gastrointestinal tract.
  • The company has been working in response to the FDA’s Complete Response Letter (CRL) asking for more data.
  • The good news (according to the company) is that it already has collected most of the data being asked from a prior trial to respond to the CRL so it is terminating the existing trial earlier.
  • This will save capital and possibly commercialize the treatment earlier than expected.
  • The Read-out for the trial is expected by the end of this year. (The readout is essentially when the results of a clinical trial are made public).

Information source

Tricida, Inc. (TCDA) Technical and Fundamental Analysis

  • TCDA is trading at around $9.
  • The IV % Rank is close to 100% right now (red box image below) in anticipation of the trial read-out.
  • The IV itself is at around 3.8, which is extremely high.
  • $5 support line.
  • Significant recent insider buying and selling.
  • The company is low on cash.
TCDA chart 9.22.2022

TCDA chart

TCDA insider buying 9.22.2022

TCDA insider buying

Options Trade Idea

Open a reverse diagonal spread by buying a $2.5 strike, 21 Oct 22 expiration, and selling a $5 strike, 18 Nov 22 expiration Put (first image below).

Netting about $1.8 credit.

In theory, it’s equivalent to risking $70 to make $180 per contract if all goes well (second image below).

If the read-out does not happen by Oct expiration, take the theta profit and open a new position with Nov 22 and Dec 22 expiration Put.

TCDA options chain 9.22.2022

TCDA options chain

TCDA risk profile 9.22.2022



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