ViroPharma (VPHM) adds 13 cents to $23.16 and an Aug 15 – 22.5 put spread trades on the stock for $1.55, 6000X and looks opening. Bearish trading comes after a two-week 16.9 percent in the biotech. Shares have now recovered the entire 9.7 percent loss suffered on May 1 after earnings were last reported. The spread trader is possibly anticipating another round of volatility when the company reports again around 7/26.
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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.