Amarin (AMRN) loses $1.41 to $13.90 after the FDA approved late-Thursday the company’s Vascepa for the treatment of hypertriglyceridemia. The stock had run up prior to the decision and might be seeing a “buy the rumor, sell the news” type reaction. The top options trade on the biotech are Jan 18 – 25 call spread for $1.50, 8900X. It’s possibly closing or an adjustment, as open interest is sufficient to cover in both contracts. Or, it’s possibly an opening play on the view today’s decline represents an opportunity or bullish plays on AMRN. Propthink blog notes today that the company is still waiting New Chemical Entity [NCE] status, which ensures to generic competition for 5 years. “This sets up another important FDA event for the stock” — LINK.
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.