Bullish Trade in VIVUS Options (VVUS)
VIVUS Inc. (NASDAQ: VVUS) is seeing some bullish action in options….
Joe Kunkle of OptionsHawk.com noted: VVUS saw a late day spread as 20,000 September $20 calls are sold at $0.80 and 10,000 December $20 calls are bought at $1.60, a zero cost ratio calendar spread. The trade plays off the 129% vs 115% IV spread and is also playing for a positive reaction to July 4th FDA PDUFA for its obesity drug, although seeing near term upside at $20 come September, but potential for further upside with partnerships, takeover, etc. later this year. Vivus has seen some bullish buying in OTM May calls today and has recently been rumored as a potential partnership coming, shares near recent highs at $12.50, looking to breakout. The trade is profitable in September all the way to $22.50 for shares. Vivus has 4 upcoming presentations at Investment Conferences this month, and it’s Qnexa looks to have the early edge for the most effective and safest obesity drug.
Shares closed up about 5.6% at $12.10 on the trading day on over 8 million shares. That is more than twice-normal trading volume and the 52-week range is $4.18 to $12.88.
JON C. OGG
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What I really like about VVUS as a play is that not only is their Qnexa diet pill really looking like a probable accepted treatment, but they also have an erectile dysfunction medication with the name avanafil looking good in recent tests. VVUS in my mind is a win win situation.