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