Monday saw shares of Avanir Pharmaceuticals (AVNR) soar on positives news from a mid-stage study on the company’s new Alzheimer’s drug AVP-923. Shares climbed $5.24 (nearly 80%) on the news.
Unusual Options Activity
At least one trader anticipated positive news from the study. Monday morning at between 9:38 and 9:39 am EST saw a trader come in buy 650 AVNR Sep 10 Calls for $0.39. Less than 10 seconds later, another 1,245 contracts in the same line were purchased.
What Does This Mean?
With the potential to control 189,500 AVNR shares, this order represents an outlay of about $76,000 in premium. This particular line of calls closed Monday’s session at $2.40 – $2.80. If sold on the offer at the end of yesterday’s session, the institution or individual would have realized profits of nearly $380k.
= = =
OptionHacker is a real-time window into the biggest hedge fund trades. It is a proprietary scanner used to scan order flow for the most unusual options activity each trading session.
