Volume Heats Up as Insys Therapeutics Inc (INSY) Gets Iced

Insys Therapeutics Inc (NASDAQ:INSY) hit an annual low after reporting lower preliminary revenue for Subsys

Apr 11, 2016 at 12:11 PM
facebook X logo linkedin

Drugmaker Insys Therapeutics Inc (NASDAQ:INSY) fell to an annual low of $13.20 this morning, after reporting declining preliminary fiscal first-quarter revenue for its narcotic pain drug, Subsys, which has drawn criticism in the past. Amid soaring volume, the stock was last seen down 23% at $13.59, with the day's huge drop landing INSY squarely on the short-sale restricted list (SSR). 

INSY is off 53% so far in 2016, and has given up more than 70% since hitting an eight-year high of $46.17 last August. But analysts have been relatively kind, giving the security two "strong buy" ratings and just one "hold."

Short sellers, however, have been plaguing INSY, with their bearish bets accounting for 26.5% of the stock's available float. At INSY's typical daily volume, it would take more than four weeks to cover all of these positions.

And with the equity sitting on the SSR list, many traders have taken to the option pits, where contracts are crossing the tape at twice their usual intraday rate. Though option volume is typically low, on an absolute basis, speculators have been picking up INSY calls over pits at an accelerated clip of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 21.11 is higher than 93% of the past year's readings. But this may not signal a flood of optimism -- the recent preference for long calls could, in fact, be short sellers looking to hedge their positions.


Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.


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