AVNR – Avanir Pharmaceuticals, Inc. – Shares of the biopharmaceutical company engaged in acquiring, developing and commercializing therapeutic products for the treatment of central nervous system disorders are up more than 5.15% this morning to stand at $2.65 as of 10:55 am (ET). The AVNR ticker symbol popped onto our ‘hot by options volume’ market scanner after one options investor initiated a bullish stance on the stock. It appears the optimistic individual sold 2,500 puts outright at the July $2.5 strike to take in an average premium of $0.26 per contract. The investor keeps the full premium received as long as shares of the underlying stock trade above $2.50 through July expiration. The short sale of puts implies the trader is happy to have shares of the Abreva maker put to him at an effective price of $2.24 each should the puts land in-the-money at expiration next month.
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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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