Arrowhead Research Corporation (ARWR) Speculators Eye the $8 Level

Short-term option volume is heating up on Arrowhead Research Corp (ARWR)

Dec 31, 2014 at 11:29 AM
facebook twitter linkedin

Option volume is heavy today on Arrowhead Research Corp (NASDAQ:ARWR), relatively speaking. The under-the-radar stock typically sees fewer than 2,500 calls and puts change hands during an average session -- but already today, more than 1,300 calls and 679 puts have been traded on this biopharmaceutical name.

It's the second straight day of heavier-than-usual option activity for ARWR, as volume jumped to seven times the norm in Tuesday's session. Yesterday's most popular option was the January 2015 8-strike call, with 2,184 contracts exchanged -- many of which were bought to open.

With ARWR off 1.3% at $7.47 this morning, those short-term calls are out of the money by a slim margin. However, the stock traded as high as $8.55 yesterday, bolstered by reports of a possible acquisition offer from Gilead Sciences, Inc. (NASDAQ:GILD).

Yesterday marked the first trip north of $8 for Arrowhead Research Corp (NASDAQ:ARWR) since early October, and it's possible that the sudden interest in short-term 8-strike calls wasn't necessarily bullish. Short interest accounts for 31.5% of the stock's float, so bearish bettors may have been purchasing calls to hedge against a potential buyout-related pop over the next two weeks until expiration.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1