Call buyers look for Acadia to double

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Shares of Acadia Pharmaceuticals are rising with bullish option activity today as investors anticipate news on a new drug.

More than 2,000 December 3.50 calls were purchased in less than 2 minutes this morning, including a single print of 1,333 that went for $0.48, according to optionMONSTER's Heat Seeker tracking system. The activity was clearly new buying, as the volume dwarfed the strike's open interest of just 14 contracts at the start of the session.

These long calls are betting that the share price will double by expiration in mid-December. The options could be sold at a profit earlier if premiums rise before then, but they will expire worthless if the stock doesn't rally. (See our Education section)

ACAD is up 6.81 percent to $2.04 in midday trading, just off its session high. The stock spiked above $3 briefly on Oct. 5 but has been falling steadily since then.

The company is in Phase III trials of a treatment for Parkinson's disease psychosis. Results from those tests had been expected at the end of this month.

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