Implied Volatility Alert: MTXX, SPPI
07/02/09
MTXX calls active as shares rally 25%
Matrixx Initiatives (MTXX), an over-the-counter healthcare company, is recently up $1.48 to $6.97.
The FDA released details of a report on the May 2009 inspection of Matrixx plant.
The report said "written procedures describing the handling of complaints are not followed," and that the data showed "some degree" of loss of smell that resulted in complaints of about 3.6 persons for every 100,000 units sold, according to Reuters.
The peak rate for loss of smell was in 2004, with complaints reaching about 6.7 for every 100,000 units sold
MTXX call option volume of 7,263 contracts compares to put volume of 1,040 contracts.
July option implied volatility is at 152; October is at 136, according to Track Data, suggesting large price movement.
SPPI straddle prices expensive into PDUFA
Spectrum Pharmaceuticals (SPPI) is recently down 16 cents to $6.43.
Today is the Prescription Drug User Fee Act (PDUFA) date for SPPI's Zevalin, a first-line consolidation therapy for non-Hodgkin's lymphoma.
SPPI call option volume of 3,583 contracts compares to put volume of 1,397 contracts.
SPPI July 7.5 straddle is priced at $2.80; August is at $3.20; November 7.5 is at $4.40, according to Track Data, suggesting large price movement.
Posted at 3 p.m.
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Researcher Paul Foster has 23 years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options, and mergers and acquisitions.
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