Alexza (ALXA) loses 11 cents to 69 cents and a Mar 1 – Jun 1 call spread is bought on the stock for 30 cents, 25000X. Another 5,000 also traded for 30 cents and today’s flow likely rolls a positoin opened about a month ago, when Mar 1 calls on the biotech were being bought for 25 and 30 cents (see 12/21 and 12/22 color). Shares are down 7 cents since 12/22 and the Mar 1 calls are being liquidated for only a nickel. A new bullish position in Jun 1 calls is being opend for 35 cents. It’s probably a play on forthcoming FDA news, as the position adjustment comes after the company announced today that the FDA has moved an act date for an NDA on ADUSAVE from Feb 4 to May 4.
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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.