Vivus Pharmaceuticals (VVUS) loses 21 cents to $24.56 and a 5,058-lot of Jun 25 calls is sold to open on the biotech at $1.14 on ISE. Separately, a Jun 30 – 35 call spread trades on the biotech, 3943X. While both blocks were sold, the Jun 35s are closing and the Jun 30s are opening, according to ISEE. A third block of 3000 Jun 35 calls also traded on the $1.16 bid on AMEX. 30-day ATM implied vols are falling 9.5 percent to 70.5 and the term structure shows the highest implied volatility is in the July options, which corresponds with a PDUFA date for QNEXA. The date was pushed back three months to July 17 on 4/10.
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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.