Arena Pharmaceuticals (ARNA) is flat at $3.39 and options volume is 3X the average daily, led by a seller of 10K July 3 puts at 57.5 cents each. It might close, as open interest in the contract is 19.8K and now the largest OI position in the name. ARNA is trying to win approval for its obesity drug and implied volatility in the July contract is elevated (IV=105.7% -8.6%) ahead of the FDA decision.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.