Volume Spike Investor

Sequenom (SQNM) saw an exponential move today despite no real news.  The rumors in the marketplace are that the company is close to resolving at least some of the lab test issues that created a near-term scandal and cratered the stock.  We have seen shares move nearly 40% as of 3PM EST today on more than 30 million shares.  This one has an average daily volume of 5.3 million shares.

To show how active this has been IN OPTIONS CONTRACTS, we have seen over 15,000 of the JUN-09 $4 CALLS and 11,000 of the JUN-09 $5 CALLS.

Because this testing for Downs Syndrome was supposed to be the Holy Grail of testing before the data came into question, we do actually “hope” that the rumors are true.  Just be advised here that rumors often come up in troubled biotech and medical device names, and many times those same rumors have no basis. We don’t want to kill that notion or possibility, but we do want to make a general rough weather advisory statement here as a caveat.

JON OGG