Options Brief: King Pharmaceuticals (KG) Call Options in High Demand

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.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

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