ARNA is trading $4.40, down 35.8% with IV30™ up 7.5%. The LIVEVOL™ Pro Summary is below.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjaKIw-L_PzEUoglS2yJaENJ-3S1u-tdD6WTv1KL97jv-KhSlUc16sH1P9d3aCvNRvB33sfp86fUl2Uzhabu4l-Ohuv8cJMp1MD3MtJS8PLBaXX4UoF3BOY5NkHVWPu5RzX6Y7l4vaJ1TU/s400/arna_summary_9-14-2010.gif)
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.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHIzfoFoogHzJqqf45XLTswX1mZKtMi39Mc9tpXuXTpHJjfvVNSVJ8BT-96T5wLaX-m1mv5QnmU4GTybbTAeE3UKrVu6QxOSJxayG3oJ7-qi1ZaakfklZOqrhrlaYyi-IkYrtwySlOa-A/s400/arna_summary.gif)
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).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwoMwAQFzqhJu-G8lIajbEh7tGJ0gg8oBKYhQ9fVQyhUJ2Tik19ACme6IQflsA83Lxpmw5W61KSIgi44xlGDqM0dOhJs4Ele-Hn0nbN3hsp8C7iHwv-rdqtDVPePp_yLZ_hLyIBFDiXiI/s400/arna_pnl.gif)
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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