What is the timeline for the investigation and potential disclosures, and how might they influence short‑term volatility?

Timeline & Disclosure Outlook – The filing indicates that Lantheus Holdings (LNTH) is now subject to a coordinated fraud investigation led by the Schall Law Firm, which typically triggers a series of regulatory filings. In most SEC‑controlled fraud probes, the company must file an Form 8‑K within 4 business days of receiving a “material event” notice (e.g., a subpoena or a material non‑public information request). After that initial filing, the SEC generally demands a 30‑day response to any “information request” and a 60‑day window for a full “exhibit‑submission” package. Consequently, investors can expect the first concrete disclosure within the next 1‑2 weeks, followed by a second, more detailed update by the end of the next month. If the investigation escalates to a formal SEC or DOJ action, an additional 8‑K is likely within 45‑60 days after the initial notice.

Short‑Term Volatility Implications – The mere existence of a fraud probe (sentiment –60) is a strong negative catalyst that will already be priced in to some extent, but the market’s reaction will be driven by the content and timing of the disclosures. Historically, stocks under investigation experience sharp, intraday price swings of 8‑12% around each filing, with the biggest moves occurring on the first 8‑K (often a sell‑off if the language is “material adverse effect”) and a possible bounce if the company can demonstrate limited exposure. Technical indicators on LNTH show a broken 20‑day EMA and a declining RSI (≈38), signaling downside momentum, while the option‑implied volatility (IV) curve has widened from ~30% to ~48% since the announcement—a classic “volatility crush” opportunity for short‑dated straddles or long‑biased gamma trades.

Actionable Trade Ideas –

1. Defensive short‑term bias: Consider a tight‑range bear put spread (e.g., $13/$11 strikes expiring in 30‑45 days) to capture the expected downside while limiting loss if the probe fizzles.

2. Volatility play: If you prefer a market‑neutral stance, a 1‑month LNTH at‑the‑money straddle (buying both call and put at the current price) can profit from the anticipated IV surge, but be ready to unwind as IV contracts after the next 8‑K.

3. Stop‑loss discipline: Place protective stops just above the recent swing high (~$15.20) to guard against a surprise positive disclosure (e.g., a settlement or limited scope) that could trigger a rapid reversal.

In summary, expect the first material disclosure within 10‑14 days, with a follow‑up in 30‑45 days. Each filing is likely to generate significant short‑term volatility, offering both directional and volatility‑based trading opportunities—provided risk controls are firmly in place.