Relypsa Inc (RLYP) Pops on More Buyout Rumors

RLYP is trading higher on an unconfirmed buyout rumor from AZN

Dec 24, 2015 at 9:54 AM
facebook X logo linkedin


Biopharmaceutical company Relypsa Inc (NASDAQ:RLYP) has been making an impressive comeback over the last two months. After dropping more than three-quarters of its value between its March high and October low, the stock has clambered back to a net loss of just 9.3% for 2015. In fact, the shares have outperformed the S&P 500 Index (SPX) by an astounding 72 percentage points over the past 40 trading days.

Today RLYP is trading 1.4% higher at $28.31, after the Daily Mail alluded to rumors that AstraZeneca plc (ADR) (NYSE:AZN) may be interested in buying the company. In fact, the article mentions a potential offer of $46 per share -- a 62.5% premium over today's price. This news comes less than two weeks after sources said Merck & Co., Inc. (NYSE:MRK) may be looking to purchase the drugmaker.

Analysts and traders have been cheering on RLYP's recent rally. Only one of the eight analysts following the stock gives it anything less than a "strong buy" rating. And while about 20% of Relypsa's available float is still sold short, these bears have been backing off over the last couple of weeks, with short interest falling 3%.

In the option pits, calls have been the contracts of choice by a hefty margin. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Relypsa Inc (NASDAQ:RLYP) calls have been bought to open at nearly 17 times the rate of puts over the past 50 days of trading -- a ratio that stands higher than 70% of comparable readings in the last year.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI