🌊 MLTX Mega Call Bet - $5.3M Institutional Bounce Play! 💰
A massive $5.3M institutional options trade just hit MLTX. with 40x unusual volume. Full breakdown includes whale trade dissection, technical support/resistance from gamma data, and risk-adjusted entry points.
📅 October 2, 2025 | 🔥 Unusual Activity Detected
🎯 The Quick Take
Someone just dropped $5.3 MILLION on deep in-the-money MLTX calls after the stock crashed 90%! This massive institutional bet on 25,000 October 17th $5 calls comes just days after the biotech plunged from $62 to $7 on mixed clinical trial results. With multiple catalysts ahead including PPP data in Q4, this whale is betting on a sharp rebound from oversold levels!
📊 Company Overview
MoonLake Immunotherapeutics (MLTX) is a clinical-stage biotech developing next-gen inflammatory disease treatments with:
- Market Cap: $448 Million
- Industry: Pharmaceutical Preparations
- Primary Focus: Inflammatory skin and joint diseases
- Lead Asset: Sonelokimab (tri-specific Nanobody® IL-17 inhibitor)
💰 The Option Flow Breakdown
📊 The Tape (October 2, 2025 @ 12:32:20)
| Time | Symbol | Side | Buy/Sell | C/P | Expiration | Premium | Strike | Volume | OI | Size | Spot | Option Price |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12:32:20 | MLTX | MID | BUY | CALL | 2025-10-17 | $5.3M | $5 | 25K | 621 | 25,000 | $6.99 | $2.10 |
🤓 What This Actually Means
This is a massive bounce bet on a crashed biotech! The trader:
- 💰 Spent $5.3M buying deep in-the-money $5 calls
- 📈 Controls 2.5 million shares worth ~$17.5M
- 🎯 Profits immediately if MLTX moves above $7.10 ($5 strike + $2.10 premium)
- 📊 Volume is 40x the open interest (25K vs 621 OI)
- ⏰ Only 15 days until expiration - this is a SHORT-TERM directional bet!
Unusual Score: EXTREME (721x average size) - This happens maybe once a year for MLTX! This is institutional desk-sized trading.
📈 Technical Setup / Chart Check-Up
YTD Chart
MoonLake has been on an absolute rollercoaster! After trading above $60 just last week, the stock crashed 90% to current levels around $7. This creates a classic oversold bounce setup:
- 52-week high: $62+ (just days ago!)
- Current price: $7.08 (down 88% from highs)
- Key catalyst: Mixed Phase 3 VELA trial results triggered the crash
- Setup: Extreme oversold conditions prime for technical bounce
Gamma-Based Support & Resistance Analysis
Current Price: $7.08
The gamma chart reveals limited options activity but key level:
- 🟠 Call Gamma Resistance: Major wall at $7.50 strike with 1.8M gamma exposure
- 🔵 Put Gamma Support: Minimal put activity suggests limited downside hedging
- Net Gamma Bias: Bullish (5.3x more call gamma than put gamma)
- Key Takeaway: The $7.50 level acts as a magnet - if price breaks above, could see acceleration
Options activity shows heavy concentration at $7.50, creating a "gamma magnet" that could pull price higher if momentum builds.
⚡ Catalysts
Upcoming Events
Q4 2025 - Palmoplantar Pustulosis (PPP) Phase 2 Data
- LEDA trial primary endpoint readout expected within 8-10 weeks
- PPP represents a $2 billion untapped market with ZERO approved treatments
- Positive data could trigger significant rebound
Q1 2026 - Axial Spondyloarthritis Data
- S-OLARIS Phase 2 trial results expected
- Another shot on goal for sonelokimab platform validation
Mid-2026 - BLA Submission
- FDA filing planned despite mixed VELA results
- Commercial launch potential in 2027
Recently Completed
September 28, 2025 - VELA Phase 3 Results
- VELA-1 hit primary endpoint (34.8% vs 17.5% placebo)
- VELA-2 missed due to high placebo response (35.9% vs 25.6%)
- Stock crashed 90% on mixed results creating current opportunity
🎲 Price Targets & Probabilities
Based on gamma levels and catalyst timeline:
🚀 Bull Case (30% chance)
- Target: $10-12 (gamma resistance above $7.50)
- Catalyst: PPP data positive, oversold bounce accelerates
- Timeline: 2-4 weeks
😐 Base Case (50% chance)
- Target: $7-8 (current gamma concentration zone)
- Catalyst: Technical bounce from oversold, consolidation
- Timeline: Next 2 weeks
😰 Bear Case (20% chance)
- Target: $5-6 (limited put support below)
- Catalyst: Continued selling pressure, no near-term catalysts
- Risk: October 17 expiry creates time pressure
💡 Trading Ideas
🛡️ Conservative: Sell Cash-Secured Puts
- Sell MLTX November $5 puts for ~$0.50 premium
- Collect 10% return in 6 weeks if stock stays above $5
- Worst case: Own shares at $4.50 effective cost
⚖️ Balanced: Buy November $7.50 Calls
- Cost: ~$1.00 per contract (November $7.50 calls)
- Upside: Unlimited above $8.50
- Risk: Limited to premium paid
- Why it works: More time than the whale's October calls
🚀 Aggressive: Follow the Whale
- Buy MLTX October 17 $7.50 calls for ~$0.80
- Pure momentum play on oversold bounce
- Risk entire premium but 3x potential if stock hits $10
⚠️ Risk Factors
Real talk - here's what could go wrong:
- Biotech Binary Risk: 90% crash shows these can go to zero
- FDA Uncertainty: Mixed trial results create regulatory questions
- Legal Overhang: Multiple law firms investigating securities violations
- Time Decay: October 17 expiry = only 15 days left!
- Single Asset Risk: Company depends entirely on sonelokimab
🎯 The Bottom Line
Here's the deal: Someone with DEEP pockets just bet $5.3M that MLTX bounces from these crashed levels. After a 90% drop, this whale is playing the "dead cat bounce" with serious conviction.
If you're bullish: Consider longer-dated calls or selling puts for income. The October 17 expiry is TIGHT.
If you're watching: Mark your calendar for PPP data in Q4 - that's the next major catalyst.
If you're bearish: This bounce attempt could fail quickly. The $5 level is critical support.
Bottom line: This is a high-risk biotech bounce play. The institutional money says oversold = opportunity, but biotechs can stay crushed. Size accordingly! 💊
Options trading involves substantial risk and is not suitable for all investors. Past unusual activity does not guarantee future results.