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Volatile Tekmira Pharmaceuticals Corporation (TKMR) Call Volume Spikes

Tekmira Pharmaceuticals Corporation calls are being exchanged at a rapid-fire rate today

by 8/4/2014 11:31 AM
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Earlier this morning, shares of Tekmira Pharmaceuticals Corporation (NASDAQ:TKMR) carried over their momentum from Friday, spiking by as much as 18.3% on hopes that the U.S. Food and Drug Administration (FDA) will permit the company to resume testing its Ebola treatment. At last check, however, the shares had slipped into the red, down 1.4% at $14.06. Elsewhere, in options land, calls are trading at 59 times the typical intraday rate. Plus, the stock's 30-day at-the-money implied volatility soared by as much as 44.2% today -- to a fresh annual high of 143.5% -- suggesting short-term contracts are in demand.

Speaking of which, the front-month August 17.50 call is seeing the most attention among TKMR options, with roughly 2,500 contracts on the tape. Just 611 contracts reside in open interest here, making it safe to assume new deep out-of-the-money positions are being created on the biotech firm.

As alluded to earlier, Tekmira Pharmaceuticals Corporation (NASDAQ:TKMR) has performed well on the charts lately. In fact, during the past month, the shares have outperformed the broader S&P 500 Index (SPX) by 27.3 percentage points. An additional catalyst could come in the form of TKMR's second-quarter earnings report, scheduled for next Wednesday, Aug. 13 -- just days before the aforementioned contracts expire. While the company has fallen short of the Street's consensus earnings estimates in three of the last four quarters, the shares have averaged a 3.5% gain in the three sessions subsequent to reporting.


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