Savient Pharmaceuticals (SVNT, news, chart, volatility) is seeing four times normal options volume, on a mix of both bullish and bearish trading. The top two trades include 2,200 of the December 17.5 puts for $3.25 and 2,200 of the October 17.5s for $2.00. Both traded on the CBOE at Noon Eastern Time. A source on the exchange tells us this is part of a calendar spread for a debit of $1.25. If so, the strategist is looking for SVNT to hold above $17.50 between now and October expiration and head lower from there. SVNT now trading for $18.65.

The day’s top trades also include, 1,700 of the January 22.5 SVNT calls offerside for $3.15 and 1,700 of the January 30 calls on the bid for $1.05. Both traded on the CBOE around 10:35. In this case, the trade appears to be part of a bull call spread, where the strategist is paying $2.10 for a potential payoff of $5.40 if SVNT rallies to $30 or more by options expiration.

So, there appears to be jockeying for position in both directions in Savient Pharmaceuticals and this could indicate that some volatility in the share price is to be expected. Indeed, at 141 percent, implied volatility in the short-term options is up almost 10 percent today.