Amarin Pharmaceuticals (AMRN) loses 11 cents to $11.51 and it looks like a Jan 8 – 20 bearish risk-reversal traded on the stock for 45 cents, 10250X to open. Separately, a Sep 9 – 12 put spread is apparently bought on AMRN for $1.60, 1000X, and a Jan 15 – 20 call spread for $1.15, 750X. Implied volatility is around 140 and at the upper end (96th percentile) of its 52-week range heading into earnings, due out after the closing bell today. Shares have lost more than 25 percent since late-July and came under pressure in on 7/27 following FDA news.
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.