A large Call position was purchased/sold as well. I think its an options Strangle. "They" are probably expecting a non-event tomorrow and are gonna make out like bandits on options premium gains.
Id be surprised to see a "pop" at all. IF "they" release the data pre-market, I'd bet on it falling. IF it does rise, Max 5% on low volume.
I dont think it will raise red flags. If the DATA is released after hours at 7ish, then the rubber band will be stretched and more tension will build. Id rather have it come out after the markets closed and let those on the short side steep in angst over having ONE day to cover before Wednesday.
This is called a "Strangle" and you dont want the stock to move at all. If AMRN went to zero, and you held on to the put you sold, you'd be legally obligated to buy the stock at $8 even though its zero. Also the PUT premium would greatly increase over the course of that time wiping out any premium gain. A better example is the stock is at $8 and you speculate that the stock will stay within a 4 dollar range. You SELL a $10 Call for X premium and SELL a $6 Put for X premium and watch it like a hawk making sure it does not cross your strike. This strategy is a level 4 options strategy and requires ALOT of margin. In order to sell a Put all brokerage houses require you to have a certain amount of cash.
The strategy is called a strangle. You sell out of the money puts and calls and speculate the stock stays within a certain range. "They" must be expecting and non event tomorrow. I don't blame them. The Vascepa DATA will probably come out after hours rendering the options worthless. Wish I had $100,000 to play this strategy.
Im "hoping" more for a pop to $10 assuming the news is good, sell off/ take profit and drop 10%. Then hop back in with a little bit of leverage.
I went through ARNA FDA garbage. ARNA had a solid run up and then dropped 20% in about 5 seconds about a week before the decision. Its actually a bullish sign. The "Big/Smart Money" is greasing the wheels. Sell options at the top to obtain more cash, then use the cash to obtain more shares at a discount once the cash clears. Assuming those that were short didn't cover, now have less shares to cover a position and those that want to get in will have to pay a higher premium to ride to potential gravy train. We want these guys to get in.... I sure as hell dont want them against me. Everybody knows how that goes.