ArQule (ARQL) shares rallied $2.50 to $6 and implied volatility is crashing down after the biotech’s ARQ 197 showed some success in treating patients with non-small cell lung cancer. Options volume surged to more than 3000X the recent average daily on the news, with 7750 calls and 8400 puts traded so far. Trading is brisk in Apr 7.5 calls, Apr 5 puts, Apr 7.5 puts, July 5 puts and July 7.5 calls. Premium sellers have surfaced and, consequently, implied volatility has fallen about 60 percent, but remains elevated around 115.