Does This ARIAD Pharmaceuticals, Inc. (ARIA) Rally Have Legs?

Ariad Pharmaceuticals, Inc. (ARIA) is just one of several biotechs rallying today

Digital Content Group
Mar 16, 2015 at 1:39 PM
facebook X logo linkedin

Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) is following a number of sector peers higher this afternoon, in what's turning out to be a big day for biotechs. At last check, the shares were up 2% at $8.65, bringing their year-to-date lead close to 26%. In fact, the equity is nearing its annual high of $8.72, touched last April. Meanwhile, in options land, activity is ramping up.

Diving right in, calls are crossing at twice the usual intraday rate, and four times the pace of puts. Also, ARIA's 30-day at-the-money implied volatility has spiked 3.9% to 60.1%, hinting at elevated demand for short-term strikes. Along those lines, traders are buying to open the now in-the-money March 8.50 call, expecting the shares to extend their lead north of $8.50 -- and possibly assail new heights -- by Friday's close, when front-month options expire.

However, short sellers are less convinced -- and there are plenty of them. Nearly 31% of Ariad Pharmaceuticals, Inc.'s (NASDAQ:ARIA) float is sold short, which represents more than a week's worth of pent-up buying activity, at typical daily trading levels. In other words, if the stock continues to run higher -- potentially en route to a fresh 12-month peak -- a short-covering rally could ensue.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI