After falling to a new 52-week low of $29.01 yesterday, Forest Labs (FRX) shares saw a morning spike and are trading up 22 cents to $29.23 today. The top options trade in the pharmaceutical maker is a 2200-lot of Dec 30 calls for 65 cents per contract on ISE, which was bought-to-open for a customer account, according to data from the exchange. 4580 Dec 30 calls traded on the stock. Jan 30 and Jan 31 calls on FRX are seeing interest as well. Meanwhile, implied volatility in options on stock is up 7.5 percent to 30. Today’s call buying might represent bottom fishing after a 25.7 percent drop in the underlying since June.
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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.