Obligatory disclaimer, this is not financial advice, I am not a finance professional. This is simply what I am doing and I have a high tolerance for risk. I would welcome any advice or constructive criticism on my approach.

Despite today's wider stock market blood bath and smaller cap psychedelic stocks bleeding, Compass Pathways outperformed and closed at a little over 2% (and is up 1% after hours). I purchased multiple $7.50 calls with an expiration date of February 21st, 2025 as well as just over 2000 shares of ATAI (now hold 3000 shares @ an average of $1.49 in my TFSA, for those who don't know this is a Canadian Tax Free Savings Account). The premium I paid on the CMPS calls is high but imo worth it for the extra security. Phase 3 readout for COMP 360 should be sometime in Q4 2024. This play all hinges on positive phase 3 results which I believe will be the case. This will drive the stock price up, at least over $10 I think. ATAI made a strategic investment in Compass Pathways and owns around 20% of the company. Positive data from the trial should also make ATAI's stock rise. I don't want to speculate too much but I think propelling it into the $2-3 range is realistic. When this happens my plan is sell half and retain half in my TFSA until ATAI is back to $10 .

Federal Reserve will likely cut interest rates at some point, maybe September which I think will help as well. Next week I intend to buy 20 or 30 $1.50 ATAI calls with an expiration of February 21st, 2025 as well.

Lastly, the FDA decision on MDMA assisted therapy is set to be announced on August 11th. I am not sure how likely approval is and am not getting my hopes up but it's a pivotal moment for the whole sector imo, and approval could be a catalyst.

Thoughts?