Forest Labs are down 30c to $28.10 and option volume is 3x the daily average driven by a combination of the September $26 puts and $31 calls which have traded 6,000 contracts in what looks like an opening bullish risk/ reversal (sold puts, bought calls) for a 10c net credit. The company reported earnings on 7/20 and that slightly ahead of expectations the stock has been stuck between $28.-$28.80 for the past three weeks.

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2 users commented on " Forest Laboratories Inc (FRX) $28.18 -0.81% "
Follow-up comment rss or Leave a TrackbackThanks Steve. Nice write-up! I confirmed, it is a bullish risk-reversal.
For more from Steve Smith, also visit:
http://www.minyanville.com/optionsmith/
Not the first time the risk/reversal traded. It opened my eyes. Not sure what is going on. The prior risk/reversal was pre-fda though and before FRX pulled back (1 to 2 months ago).
Not sure what to make of it, if it’s new positioning for another pop or???? maybe there is something else coming.