NEVIEW Help Biopharmaceutical firm Axsome Therapeutics, Inc. (AXSM) has an application with the FDA for approval of an anti- depression drug. The FDA recently sent the application back stating there were deficiencies in the application, which the company is currently addressing. The company currently has $114 million in cash and is burning cash at the rate of $33m per quarter so they should be able to survive for at least three more quarters without external funding. The initial news sent the stock down 60%. The options market is pricing in extremely high future expected volatility with February At- The Money Calls and Puts trading at implied volatilities over 150%. Pick a side and decide if you want to buy or sell the February 27.50 Strike Straddle. Graph the payoff diagram of your chosen strategy and be sure to include the Max Gain, Max Loss, and Breakeven levels. 2/1/22 Price AXSM Stock 28.50 AXSM Feb 27.50 Call 4.20 AXSM Feb 27.50 Put 3.10 Bar Chart AXSM US Equity 90 Suggested Charts 96 Actions 97 Edit. 02/01/2015 - 02/01/2022 Last Px Local CCY Mov Avgs 10 30 16M YTD 1Y SY Max Daily U. Table Track Annotate Key Events + Quick-Add Zoom > Calc Mode As of 01-Feb-2022 A m Center Strike 10 Calls/Puts Calls 10 Puts 19 Term Structure 10 Moneyness Calls Strike Puts Ticker Bid Ask DA GA IVB IVA Volm Oint Ticker Bid Ask DA GA TVB IVA Volm Oin 18-Feb-22 (17d); CSize 100; 1Brw 1.98; R 5.01; IFwd 28.49 17: 18-Feb-22 (17d); CSize 100; IBrw 1.98; R 5.01; IFwd 28.4 D AXSM 2 C12.5 15.30 18.50.90.0016 507.41 12.50 109AXSM 2 P12.5 5.00-09.0011 744.80 AXSM 2 015 12.60 16.00.88.0022 421.19 1 15.00 106AXSM 2 P15 .75 -08.0026 264.56 DAXSM 2 C17.5 10.60 12.20.880037 250.14 17 17.50 107 AXSM 2 P17.5.10 .60-.09.0037 129.32 198,81 28 17 4 AXSM 2 020 8.40 9.80.85.0053 92.47 206.46 31 20.00100AXSM 2 P20 .40.70 - 12.0057 137.74 164.55 1256 29. 9AXSH 2 022.5 6.50 7.40.80.0077 107.44 165.95 2 178 22.50 109 AXSM 2 P22.5.85 1.15 - 19.0082 134.38 153.05 19 20 BAXSM 2.025 4.90 5.80.71.0096 121.35 164.86 3 127_25.00110 AXSM 2 225 1.50 2.05 - 29.0101 127.83 154.43 6 60 DAXSH2 C27.5 3.70 4.20.61.0116 131.35 152.48 8 316 27.5011 DAXSM 2 P27.5 2.75 3.10 - 39.0120 134.70 149.49 2 12 AXSM 20 2.65 3.10.50.012133.65 151.08 110 510 30.00110AXSH2 P30 4.10 4.60 -.50.0122 131.88 152.24 3 22 9AXSH2 C32.5 1.85 2.25.40.0119 133.15 150.06 242 219 32.5011DAXSM 2 P32.5 5.80 6.30 - 59.0118 132.17 153.29 1 10 20 AXSH 2 035 1.30 1.70.33 .0108 134.81 153.29 35 437 35.00110AXSM 2 P35 7.70 8.30--66.0107 131.32 159.00 8 1D AXSM 2 C37.5 .90 1.30.26.0096 135.70 156.75 1233 202 37.50119AXSM 2 P37.5 9.70 10.50 -.72.0094 125.85 167.86 7 2 12 AXSH2 C40 .65 .95.20.0083 139.05 157.00 SO 450 40.00110AXSM 2 P40 12.00 12.90 -74.0081 130.21 182.59 3 13 AXSM 2 C42.5 ,40 ,85.18.0072 135.33 167.47 3 58 42.50117AXSM 2 P42.5 14.20 15.60 - 74.0070 115.00 209.05 19 AXSM 2 045 .25 55.13.0060 133,65 161.20 18 451 45.00118AXSM 2 P45 16.20 17.60 - 80.0064 197,61 2 19 AXSM 2 047.5 .15 .60.13.0054 131.58 177.99 29 47.50119AXSM 2 P47.5 18.80 19.80 -84.0057 194.36 10 AXSH 2 C50 ,25 .50.11.0047 156.04 181.65 1235 279 50.00120AXSM 2 P50 20.30 23.10-.77.0054 253.50 ID AXSM 2 C55 .20 35.08.0036 168.40 187.67 26 334 55.0012DAXSM 2 P55 24.60 28.70 - 74.0048 310.94 18-Mar-22 (45d); CSize 100; R 5.01, IFwd 28.55 18 18-Mar-22 (454): CSize 100; R 5.01; IFwd 28.55 16 AXSH 3 C12.5 16.10 17.80.91.0017 97.91 266.88 773 12.50120AXSM 3 P12.5 .45 .90-.07.0018 173.69 211.84 59 19 AXSH 3 C15 14.10 15.90.88.0022 146.01 249.90 13 15.0012RAXSM 3 P15 .95 1.55 - 11.0025 175.95 210.49 3 15 20 AXSM 3 C17.5 12.50 13.70.85.0031 165.90 218.96 10 17.50 120AXSM 3 P17.5 1.75 2.60 - 15.0030 181.38 218.31 9: 20 AXSH 3 C20 10.90 12.40.80.0035 173.21 220.40 199 20.00 129AXSM 3 P20 2.65 3.20 - 20.0039 180.90 200.94 7 13 27 AXSM 3 C22.5 9.00 10.40.76.0044 173.34 198.76 50 149 22.50120AXSM 3 P22.5 3.40 4.10 - 24.0047 169.47 192.01 10 7. 2D AXSM 3 025 8.30 9.40.71.0047 172.63 204.32 10 417 25.00127AXSM 3 P25 5.00 5.50-30.0051 180.16 194.55 2 55 20 AXSM 3 Q27.5 7.30 8.00.65,0054 174.36 193.17 2 SO 27.50128AXSM 3 P27.5 6.30 6.90 - 35.005S 176.70 192.84 15 31 29 AXSM 300 6.10 7.00.60.0057 168,26 190.86 1 200 30,00129AXSH 3 P30 7.80 8.50 -39.0057 175.11 193.14 2 23 240 AXSH 3 32.5 5.20 6.10.56.0059 166.20 188.35 16 209 32.50 DOAXSM 3 P32.5 9.20 10.10 - 44.0058 167.54 190.58 2109 27) AXSM 3 035 4.80 5.40.51.0061 173.40 188.39 57 803 35.00 13 DAXSH 3 P35 11.30 11.80 - 49.0060 175.61 188.10 39. 20 AXSH 3 37.5 3.70 4.70.47.0061 160.97 186.21 5 619 37.50 133 AXSM 3 P37.5 13.10 13.70-53.0060 173.36 188.44 7 29 AXSH 3 C40 3.60 4.20.43.0060 171.77 187.12 51 2862 40,00130 AXSM 3 P40 15.00 15.70 -.57.0059 171.48 189.38 7 30 AXSM 3 C42.5 3.10 3.90.40.0057 170,88 191.86 6 1235 42.50 130AXSM 3 P42.5 17.00 18.00 -.59.0056 170.25 195.85 11. TAY1 2045 2.65 30 26.0067 16R0133.02 12 1167 45.0 NEVIEW Help Biopharmaceutical firm Axsome Therapeutics, Inc. (AXSM) has an application with the FDA for approval of an anti- depression drug. The FDA recently sent the application back stating there were deficiencies in the application, which the company is currently addressing. The company currently has $114 million in cash and is burning cash at the rate of $33m per quarter so they should be able to survive for at least three more quarters without external funding. The initial news sent the stock down 60%. The options market is pricing in extremely high future expected volatility with February At- The Money Calls and Puts trading at implied volatilities over 150%. Pick a side and decide if you want to buy or sell the February 27.50 Strike Straddle. Graph the payoff diagram of your chosen strategy and be sure to include the Max Gain, Max Loss, and Breakeven levels. 2/1/22 Price AXSM Stock 28.50 AXSM Feb 27.50 Call 4.20 AXSM Feb 27.50 Put 3.10 Bar Chart AXSM US Equity 90 Suggested Charts 96 Actions 97 Edit. 02/01/2015 - 02/01/2022 Last Px Local CCY Mov Avgs 10 30 16M YTD 1Y SY Max Daily U. Table Track Annotate Key Events + Quick-Add Zoom > Calc Mode As of 01-Feb-2022 A m Center Strike 10 Calls/Puts Calls 10 Puts 19 Term Structure 10 Moneyness Calls Strike Puts Ticker Bid Ask DA GA IVB IVA Volm Oint Ticker Bid Ask DA GA TVB IVA Volm Oin 18-Feb-22 (17d); CSize 100; 1Brw 1.98; R 5.01; IFwd 28.49 17: 18-Feb-22 (17d); CSize 100; IBrw 1.98; R 5.01; IFwd 28.4 D AXSM 2 C12.5 15.30 18.50.90.0016 507.41 12.50 109AXSM 2 P12.5 5.00-09.0011 744.80 AXSM 2 015 12.60 16.00.88.0022 421.19 1 15.00 106AXSM 2 P15 .75 -08.0026 264.56 DAXSM 2 C17.5 10.60 12.20.880037 250.14 17 17.50 107 AXSM 2 P17.5.10 .60-.09.0037 129.32 198,81 28 17 4 AXSM 2 020 8.40 9.80.85.0053 92.47 206.46 31 20.00100AXSM 2 P20 .40.70 - 12.0057 137.74 164.55 1256 29. 9AXSH 2 022.5 6.50 7.40.80.0077 107.44 165.95 2 178 22.50 109 AXSM 2 P22.5.85 1.15 - 19.0082 134.38 153.05 19 20 BAXSM 2.025 4.90 5.80.71.0096 121.35 164.86 3 127_25.00110 AXSM 2 225 1.50 2.05 - 29.0101 127.83 154.43 6 60 DAXSH2 C27.5 3.70 4.20.61.0116 131.35 152.48 8 316 27.5011 DAXSM 2 P27.5 2.75 3.10 - 39.0120 134.70 149.49 2 12 AXSM 20 2.65 3.10.50.012133.65 151.08 110 510 30.00110AXSH2 P30 4.10 4.60 -.50.0122 131.88 152.24 3 22 9AXSH2 C32.5 1.85 2.25.40.0119 133.15 150.06 242 219 32.5011DAXSM 2 P32.5 5.80 6.30 - 59.0118 132.17 153.29 1 10 20 AXSH 2 035 1.30 1.70.33 .0108 134.81 153.29 35 437 35.00110AXSM 2 P35 7.70 8.30--66.0107 131.32 159.00 8 1D AXSM 2 C37.5 .90 1.30.26.0096 135.70 156.75 1233 202 37.50119AXSM 2 P37.5 9.70 10.50 -.72.0094 125.85 167.86 7 2 12 AXSH2 C40 .65 .95.20.0083 139.05 157.00 SO 450 40.00110AXSM 2 P40 12.00 12.90 -74.0081 130.21 182.59 3 13 AXSM 2 C42.5 ,40 ,85.18.0072 135.33 167.47 3 58 42.50117AXSM 2 P42.5 14.20 15.60 - 74.0070 115.00 209.05 19 AXSM 2 045 .25 55.13.0060 133,65 161.20 18 451 45.00118AXSM 2 P45 16.20 17.60 - 80.0064 197,61 2 19 AXSM 2 047.5 .15 .60.13.0054 131.58 177.99 29 47.50119AXSM 2 P47.5 18.80 19.80 -84.0057 194.36 10 AXSH 2 C50 ,25 .50.11.0047 156.04 181.65 1235 279 50.00120AXSM 2 P50 20.30 23.10-.77.0054 253.50 ID AXSM 2 C55 .20 35.08.0036 168.40 187.67 26 334 55.0012DAXSM 2 P55 24.60 28.70 - 74.0048 310.94 18-Mar-22 (45d); CSize 100; R 5.01, IFwd 28.55 18 18-Mar-22 (454): CSize 100; R 5.01; IFwd 28.55 16 AXSH 3 C12.5 16.10 17.80.91.0017 97.91 266.88 773 12.50120AXSM 3 P12.5 .45 .90-.07.0018 173.69 211.84 59 19 AXSH 3 C15 14.10 15.90.88.0022 146.01 249.90 13 15.0012RAXSM 3 P15 .95 1.55 - 11.0025 175.95 210.49 3 15 20 AXSM 3 C17.5 12.50 13.70.85.0031 165.90 218.96 10 17.50 120AXSM 3 P17.5 1.75 2.60 - 15.0030 181.38 218.31 9: 20 AXSH 3 C20 10.90 12.40.80.0035 173.21 220.40 199 20.00 129AXSM 3 P20 2.65 3.20 - 20.0039 180.90 200.94 7 13 27 AXSM 3 C22.5 9.00 10.40.76.0044 173.34 198.76 50 149 22.50120AXSM 3 P22.5 3.40 4.10 - 24.0047 169.47 192.01 10 7. 2D AXSM 3 025 8.30 9.40.71.0047 172.63 204.32 10 417 25.00127AXSM 3 P25 5.00 5.50-30.0051 180.16 194.55 2 55 20 AXSM 3 Q27.5 7.30 8.00.65,0054 174.36 193.17 2 SO 27.50128AXSM 3 P27.5 6.30 6.90 - 35.005S 176.70 192.84 15 31 29 AXSM 300 6.10 7.00.60.0057 168,26 190.86 1 200 30,00129AXSH 3 P30 7.80 8.50 -39.0057 175.11 193.14 2 23 240 AXSH 3 32.5 5.20 6.10.56.0059 166.20 188.35 16 209 32.50 DOAXSM 3 P32.5 9.20 10.10 - 44.0058 167.54 190.58 2109 27) AXSM 3 035 4.80 5.40.51.0061 173.40 188.39 57 803 35.00 13 DAXSH 3 P35 11.30 11.80 - 49.0060 175.61 188.10 39. 20 AXSH 3 37.5 3.70 4.70.47.0061 160.97 186.21 5 619 37.50 133 AXSM 3 P37.5 13.10 13.70-53.0060 173.36 188.44 7 29 AXSH 3 C40 3.60 4.20.43.0060 171.77 187.12 51 2862 40,00130 AXSM 3 P40 15.00 15.70 -.57.0059 171.48 189.38 7 30 AXSM 3 C42.5 3.10 3.90.40.0057 170,88 191.86 6 1235 42.50 130AXSM 3 P42.5 17.00 18.00 -.59.0056 170.25 195.85 11. TAY1 2045 2.65 30 26.0067 16R0133.02 12 1167 45.0