Avanir Pharmaceuticals (AVNR) a stock trading 2.75, of 4% today, or .10 off recent highs of 3.26 on a rough earnings report early in the week.
The maker of cold sore cream has had an ?outbreak? of call buying in its longest term contract as a trader is buying up the September 4 calls trading .20 a contract.? A total of over 5,000 of the contracts have traded at that level.?? The calls are actually still bid as we write this, and there is no telling how many the trader is looking to buy.
With the Sep 4 calls .20 bid the Sep 3-4 call spread paying .25 might be a good way to trade off of this customer.? The IV has run up so much in these calls that they are now trading at an IV premium to the 3 calls which should almost NEVER be the case.