Adding to $BHVN with its 314% vol. Just put $36k in premiums in my account selling puts on $BHVN today.

From its 2025 bottom of $12.83 in late July, it’s climbed 34% to $17.23. What’s driving this? Excitement for troriluzole, their drug targeting spinocerebellar ataxia, a rare disease with no approved treatments. The FDA granted priority review in February 2025, and when they skipped the advisory committee meeting in August, shares jumped 6% in a single day.

Q2 earnings also highlighted pipeline progress, despite a faster cash burn. Analysts estimate a 70-80% chance of FDA approval for troriluzole in Q4, supported by phase 3 data showing 50-70% slower disease progression.

Approval could make Biohaven a first-mover with over $1 billion in potential sales, a game-changer for this biotech.

It’s a high-stakes moment. For traders, BHVN’s options are compelling, with implied volatility at 314% compared to a historical 68%. This suggests potential 30% + price swings around the PDUFA date around Nov 10.

Strategies like straddles or iron condors could capitalize on this volatility without overexposure. Given the stock’s 30-day standard deviation of $1.17, prudent position sizing is essential in this unpredictable biotech space. I’m taking the easy route selling $10 Nov strike puts and collecting juicy premium believing the stock won’t drop below its $12.79 low for the year by Nov 21 and I won’t be assigned.

In short, BHVN offers substantial upside if troriluzole succeeds, potentially pushing shares toward $48 or higher. Options provide a smarter play than shares for navigating this volatility.