Last-Minute Put Buyers Flock to ARIAD Pharmaceuticals, Inc. (ARIA)

Ariad Pharmaceuticals, Inc. (ARIA) is surrounded by skepticism

May 15, 2015 at 2:29 PM
facebook X logo linkedin


Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) is down 1.8% this afternoon to trade at $8.75, but remains a long-term outperformer -- up more than 27% in 2015. At present, the shares are also testing support atop their 40-day moving average. Meanwhile, in options land, puts are flying off the shelves at more than triple the expected amount at this point in the session.

Diving right in, last-minute option bears are pouncing on ARIA puts. Specifically, traders may be buying to open the in-the-money May 9, 9.50, and 10 strikes, expecting the pharmaceutical stock to continue its descent through today's close, when front-month options expire.

This skepticism is par for the course. ARIA's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 0.32, in the 89th annual percentile. Of course, it's possible some of these puts were purchased by shareholders as protection.

Elsewhere, short interest represents more than one-quarter of Ariad Pharmaceuticals, Inc.'s (NASDAQ:ARIA) total float. At the stock's average daily trading rate, it would take more than seven sessions to repurchase these bets.
 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI