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Options Radar: Twitter Inc, RadioShack, and Repros Therapeutics Inc

Reviewing notable options activity on Twitter Inc, RadioShack Corporation, and Repros Therapeutics Inc

by 8/28/2014 12:57 PM
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Three names seeing notable options activity today are microblogging name Twitter Inc (NYSE:TWTR), struggling electronics retailer RadioShack Corporation (NYSE:RSH), and biotech firm Repros Therapeutics Inc (NASDAQ:RPRX). Here's a look at how today's options traders have been placing their bets on TWTR, RSH, and RPRX.

  • Twitter Inc (NYSE:TWTR) has jumped 3.3% today to trade at $49.61, following reports its mobile advertising unit MoPub has roughly 1 billion monthly users. In the stock's options pits, call volume has jumped to nearly three times the average intraday pace, and TWTR's 30-day at-the-money (ATM) implied volatility (IV) is up 3.6% to 40.3%, signaling elevated demand for short-term contracts. Specifically, the stock's September 48 call continues to be targeted, and is being bought to open today for a volume-weighted average price (VWAP) of $2.64, as traders gamble on more upside over the next few weeks.

  • RadioShack Corporation's (NYSE:RSH) difficulties both on and off the charts have been fodder for the Street for some time, but this week, the shares have more than doubled to $1.43, on reports of a possible rescue package in the works. The rally has sparked a rush of option activity on RSH, with overall volume running at 12 times the intraday average. Amid this accelerated demand, the equity's 30-day ATM IV has popped 15% to 218.7% -- a 52-week peak. Most active are the October 1.50 calls and September 1 puts.

  • Positive trial results of its testosterone drug Androxal have sent shares of Repros Therapeutics Inc (NASDAQ:RPRX) up 19% today to $21.95. Option traders are responding in kind -- scooping up calls at a four times what's typically seen at this point in the day. Specifically, speculators are buying to open the equity's October 22.50 calls for a VWAP of $2.10, making breakeven at the close on Friday, Oct. 17 -- when back-month options expire -- $24.60 (strike plus VWAP). The shares have not traded north of here since last October.

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