Options Volume Pops On NBIX As Shares Hit Highest Since ’06
NBIX ? Neurocrine Biosciences, Inc. ? Shares in Neurocrine Biosciences, Inc. jumped as much as 85% today to $18.05, the highest level since June of 2006, after the San Diego, California-based biopharmaceutical company yesterday announced positive results from the Phase IIb Kinect 2 study of VMAT2 Inhibitor NBI-98854 in a press release available on the company?s website.
Options volume on NBIX is well above typical levels today, with around 9,000 contracts in play as of 11:30 a.m. EST versus the stock?s average daily volume of around 845 contracts. The $14 strike puts expiring in January and February are the most traded contracts as of the time of this writing. Time and sales data suggests traders sold around 2,000 of the Jan $14 strike puts to collect a premium of $0.25 per contract, while roughly 3,000 of the Feb $14 strike puts sold for an average premium of $0.475 each. Put sellers keep the full amount of premium received as long as shares in NBIX exceed $14.00 at expiration.
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