ARNA is trading $4.40, down 35.8% with IV30™ up 7.5%. The LIVEVOL™ Pro Summary is below.
On Thursday, July 29, 2010 I wrote:
Arena Pharma (ARNA) - Big Bio-tech Vol Yields Trade
ARNA was trading $6.45. The Livevol Pro summary from that date is included below.
If you recall, we looked at a crazy 6 way spread which peaked PnL with the stock at $4 or $8 (ish) on Sep expo. The PnL chart is included (click to enlarge).
Note that the dip on the upside PnL was between $5 and $7. This was done on purpose. It would reflect a belief that ARNA will be moving away from its then current price ($6.50). With the stock movement today, this trade from Frank Fahey actually worked out pretty well.
This is trade analysis, not a recommendation.
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