Arena Pharmaceuticals Inc (ARNA) $8.64 +7.06%
Arena Pharmaceuticals (ARNA) has been rallying today in active trading of 12.3 million shares. The stock is up 8 percent to $8.72 on no news. Options on the biotech are busy as well. 32,000 calls and 7,100 puts so far. The top trades are part of a spread, in which the strategist bought a Sep 7 put – Sep 8 call at 96 cents and sold 5,000 Oct 7 calls at $1.79. The strategist might have been short the Sep 7-8 stangle and covering the position now that the stock is rallying beyond the $8 strike. Oct 7 calls might close as well. Meanwhile, 30-day ATM vols are down 2.5 percent to 61 and falling to new 52-week lows.
Category: All Stocks, Pharmaceuticals & Biotechnology, Small Cap Stocks
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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.
