VIVUS, Inc. (VVUS) Traders Cut Their Losses

VIVUS, Inc. breached potential support at $3 on Friday, sending put sellers running

Digital Content Group
Dec 15, 2014 at 10:29 AM
facebook twitter linkedin

VIVUS, Inc. (NASDAQ:VVUS) has been in a steady downtrend since mid-2013, and is currently churning in multi-year-low territory at $3.10. On Friday, in fact, the shares touched $2.92 -- their lowest level since March 2009. Not surprisingly, put volume more than tripled the usual single-session amount.

Specifically, Friday's most active VVUS strike was the January 2015 3 put, where 1,189 contracts were exchanged. However, rather than being bought to open in the hopes of additional downside, the positions were actually bought to close, as put sellers attempted to limit their losses.

Taking a step back, sentiment has generally been negative on VIVUS, Inc. (NASDAQ:VVUS) -- not surprising, given the aforementioned technical struggles. For example, two-fifths of the equity's float is sold short, representing nearly four weeks' worth of pent-up buying power, at typical daily trading levels. What's more, VVUS' 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.06 ranks in the 82nd percentile of its annual range.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners