Options expiration week...market maker pushing stock down probably to below $16 by Friday then we see a big pop up next week. Seen this many times before...reeks of manipulation but what can you do. Of course if they announce some sort of partnership on Thursday this theory goes out the door. All JMO.
AMLN – Amylin Pharmaceuticals, Inc. – Shares in the biopharmaceutical company went the way of the broader market this morning, trading down 1.5% to stand at $17.33 as of 11:15 a.m. in New York. The maker of medicines to treat diabetes this week announced that BYDUREON, the first and only once-weekly treatment for type 2 diabetes approved by the FDA back on January 27, 2012, for adults with the disease, is now available in U.S. pharmacies by prescription. News of the FDA approval last month sent shares in Amylin sharply higher, with the stock gaining more than 50.0% to top out at $18.30 in the weeks following the announcement.
A large call spread initiated on the drug maker today suggests one strategist is positioning for the shares to continue to post big gains in the next few months. It looks like the investor purchased a roughly 11,000-lot April $21/$24 call spread at an average net premium of $0.58 per contract. The trader may profit at April expiration in the event that AMLN’s shares rally another 25.0% over the current price of $17.33 to surpass the average breakeven price of $21.58. Maximum potential profits of $2.42 per contract are available on the spread if Amylin’s shares surge 38.5% to top $24.00 at expiration. The April contract calls expire on the 20th of that month, two days after Amylin Pharmaceuticals reports first-quarter earnings.