Escalating tensions with North Korea tanked the stock market today, but Vanda Pharmaceuticals VNDA – NASDAQ exhibited relative strength and managed to close the session unchanged. Perhaps at least partially responsible was the significant boost it received from a sharp trader who purchased 2,500 VNDA October 16 calls for $1.25 apiece.
VNDA trades only 91 call options per day on average, making this individual order highly unusual at more than 27 times typical volume. Costing $312,500, VNDA has to increase 12% to the break-even price of $17.25 for this trade to pay off by expiration.
Does this trader know about a pending drug approval? Keep your eye on VNDA to find out.
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