Cadence Sees Pre-FDA Stock & Options Alert (CADX)

Posted in Options 
November 11th, 2009

Cadence Pharmaceutical Inc. (NASDAQ: CADX) saw triple volume yesterday and should be active todat and tomorrow.  There is also a lot of options trading taking place  ahead of its 11/13 PDUFA Date for Acetavance as a treatment for acute pain.

OptionsHawk.com said yesterday: “sees bearish risk reversals trade as November $12.50 calls are sold and the $10 puts are bought for 2,000 contracts at a price of $1 per spread.  There is a lot of OI here so it is tough to judge whether these are opening buyers, but implied volatility is at 138% ahead of the event.”

After looking at the data there were 2,308 $10 PUTS traded for NOV and 2,478 $12.50 CALLS traded for NOV.

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