Amalyin Pharmaceuticals (AMLN) sees a midday spike and is up $1.73 to $21.53 on increasing volume of 4.5 milloin shares on reports several companies are interested in the biotech (Briefing). Merck and Sanofi were mentioned (Bloomberg). 13,000 calls and 5,900 puts traded on the stock, mostly in smaller lots. The top trades look like a Jun 25 – 29 risk-reversal for 13 cents, 932X. It might close, or maybe a bullish play, as the stock was midway between the two strikes, or at $27 per share, at the time. June 28 and 30 calls are the most actives and 30-day ATM vols are falling 23 percent to 56.5. Bloomberg had reported on May 15 that AMLN had lured numerous suitors. Takeover speculation dates back two months ago, however, and ever since the stock rallied 54.5 percent on 3/28 after the company rejected a bid from BMY.
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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.