Vivus Pharmaceuticals (VVUS) loses 33 cents to $11.71 and morning trades on the biotech include a Mar 8 – 16 bearish risk-reversal, bought for 10 cents, 2500X to open. A shareholder might have initiated the trade to collar stock after a one-month gain of more than 30 percent. Shares jumped 14.7 percent on 1/9 after the FDA asked the company to remove a restriction against the use of weight loss drug Qnexa for women of child-bearing age. Earnings will come into play late-Feb, early-March.
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.