Arena Pharmaceuticals (ARNA) is up 56 cents to $7.18 and new 52-week highs in active trading of more than 16 million shares. 35,000 calls and 5,535 puts traed on the stock, including a 3X4 July 7 – 8 call ratio spread, in which 2,866 Jul 7 calls were apparently bought on the biotech at $1.52 and 3,821 Jul 8 calls sold at $1.05. It might be a position adjustment, as open interest is sufficient to cover and ARNA has rallied nearly 100 percent since the FDA voted in favor of its fat pill on May 11. Nevertheless, implied vols are up another 13.5 percent and still elevated at 134. No news on the stock today, but the high vols and volume seem to reflect expectations for additional headlines in the days/weeks ahead. (WhatsTrading Premium Alert Sample).
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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.