Bullish trading in Valeant Pharmaceuticals (VRX) after one investor sells Jan13 $30 puts on the stock to buy Jan13 55 – 75 call spreads, paying $2.10, 4000X to open. Shares are off 27 cents to $46.90 and the three-way has traded 10000X. VRX has been volatile today after the company issued an in-line fourth quarter outlook, falling to $45.66 in morning trading. The stock is now off 2.7 percent off those lows and clinging to a 200-day moving average after a three-month 34 percent advance in the share price.
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.