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Salix Pharmaceuticals, Ltd. (SLXP) options are crossing at nine times the normal pace
Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) is up 4.1% today at $156.89, on a fresh round of reports that it could be acquired by Valeant Pharmaceuticals Intl Inc (NYSE:VRX). The buzz has options traders anxious, with overall volume running at nine times what's normally seen at this point in the day.
The option seeing the most attention is the March 160 call, which is seeing both buy- and sell-to-open activity. Members of the former group are looking for SLXP to surge above $160 by the close on Friday, March 20, when the soon-to-be front-month options expire. The latter group, on the other hand, is betting on the shares to remain below that level. 
Wall Street has taken a liking to SLXP, as a majority of covering analysts deem the stock a "strong buy." However, the equity's average 12-month price target remains at $137.63 -- well below current levels.
Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) has been in an uptrend since an early November bear gap sent the shares to an annual low of $86. Since hitting that mark, the security has tacked on a whopping 82%. Yet, the stock's 14-day Relative Strength Index (RSI) has hit 82 -- in overbought territory -- signaling a short-term pullback could be forthcoming.