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Vivus trader plays calendar for pop

Chris McKhann (chris.mckhann@optionmonster.com)

A trader is looking for a pop in biopharmaceutical company Vivus even as the stock loses ground today.

A trader bought 5,000 April 15 calls for $1.95 and sold 5,000 February 15 calls for $0.90, according to optionMONSTER's Heat Seeker real-time system. The volume at each strike far exceeded the previous open interest, so this is a new calendar spread .

The trade cost the trader $1.05, which is the most that can be lost on the spread before that first expiration. The maximum gain would come if VVUS is right around the $15 level at that time. (See our Education section)

VVUS is down 1 percent to $14.28 this morning. It was down at a 52-week low of $9.86 in mid-November and has to more than double to get back to the July highs.

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