Trading remains brisk and implied volatility is moving higher in Arena Pharmaceuticals’ (ARNA) ahead of tomorrow’s FDA review of the biotech’s obesity drug lorcaserin. Shares, which fell nearly 40 percent yesterday after briefing documents raised concerns about the decision, are down another 48 cents to $3.65 Wednesday. Meanwhile, 203K ARNA calls and 94K ARNA puts have changed hands so far today. Short-term players are bracing for a big possible move. Sep 4, 5, and 7 calls along with Sep 2, 3, and 4 puts are the most actives. Meanwhile, implied volatility, which eased a bit this morning, is now up 3 percent to 312 and new 52-week highs.
About the Author (Author Profile)
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.