VIVUS, Inc. (VVUS) Traders Cut Their Losses

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

by

Published on Dec 15, 2014 at 10:29 AM
Updated on Apr 20, 2015 at 5:09 PM

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.


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.
Wall Street Reclaims Two Key Trendlines This Week
U.S.-China tensions and dire economic data still weigh, though
Dell Stock Jumps on Upbeat First Quarter
DELL announced an upbeat first-quarter report
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.