KG – King Pharmaceuticals, Inc. – Investors are hungry for call options this morning with shares of the pharmaceutical company engaged in the development and sale of prescription pharmaceutical and animal health products trading 3.30% higher at $8.75 as of 10:40 am (ET). Bullish options players expecting King Pharmaceuticals’ shares to continue to rally purchased at least 2,900 calls at the June $10 strike for an average premium of $0.19 per contract. Investors long the calls make money if shares of the underlying stock surge 16.45% to exceed the average breakeven price of $10.19 by June expiration. The jump in investor demand for option contracts on KG boosted the overall reading of options implied volatility on the stock a whopping 65.2% to 66.98% as of 10:42 am (ET). Options traders exchanged 8,597 contracts on the pharmaceuticals firm within the first 90 minutes of the trading day versus total existing open interest on the stock of 18,824 contracts.
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