CNBC Stock Blog
- How Stock Investors Can Play Holiday Travel
- 3 Growth Opportunities in Tech: Analyst
- Prep Your Portfolio for Next Week: Stock Pickers
- Global Growth Good for Portfolio: Stock Picker
- Expect Tech Sector to Rise in Q4: Strategist
- Expect a 5-10% Market Pullback: Stock Picker
- 3 Stock Picks for This Volatile Environment: Portfolio Manager
- 3 Financial Stocks May Lead Final Rally: Market Researcher
- Gold's 'Money' Value is $4,000 to $11,000: Market Strategist
- Commercial Real Estate Bottom Near: Market Pro
MOST SHARED
- Nielsen Ratings Coming to Video Games
- Time Lapse World Series Is A Great Play
- Oil Next Week
- The Week Ahead
- 'New Moon' Midnight Showings Earn Record $26.3 Million
- Twilight, Inc., A Worldwide Craze
- Hot Topics at TEDMED
- Bove: Expect Goldman To Increase Dividend Meaningfully
- Hershey Mulls $17 Billion Bid for Cadbury: Source
- Confessions of a Black Friday Shopper
- How Stock Investors Can Play Holiday Travel
- Time Lapse World Series Is A Great Play
- Hirschhorn: Greed...or Fear
- My Top 10 Tech Toys for the Holidays
- iPhone a Better Gaming Platform Than Android?
- May Day For Dendreon
- 100% Mortgage Financing From USDA
- Holiday Tipping: Who And How Much
- Deep Discounts Should Make It a Very Tech-y Holiday
- Credit Markets on Edge About When Fed Will Raise Rates
- Bove: Expect Goldman To Increase Dividend Meaningfully
- Bullish Sign for Gold: Central Banks Are Big Buyers
- Victoria's Secret Hopes to Rekindle Desire for Lingerie
- High Roller Sues Harrah's for Lost Millions
- Wall Street Jobs Slow to Return Despite Record Profits
- Big Shareholders Ask Goldman to Cut Bonuses: Report
- Buying an Expensive House? Government Can Help
- Review: What It's Like to Drive the New Chevy Volt
RSS FEED
Text Size 
Managing Editor, OptionMonster
Shares of MannKind have seen some wild swings recently, and one institution-sized trader is making a big bet that the drug company will snap back up by 50 percent before mid-May.
OptionMonster's real-time tracking system detected a large block of 7,000 May 7.50 calls bought for $2.50 yesterday. The in-the-money calls dwarfed the average volume of 17 per day at the strike and were 19 times the open interest of 366 contracts, thereby reflecting newly opened positions.
MannKind [
Loading...
()
] rose 1.37 percent to $6.67 yesterday. For the May 7.50 calls to turn a profit, the stock would need to at least rise 50 percent to $10 or more before the options expire on May 14.
That may seem like a huge gamble at first blush, but shares of the biopharmaceutical company have been on a roller-coaster ride since Labor Day, soaring 67 percent to over $12 in the first three weeks of September but then plummeting to $5 less than a month later. Not surprisingly, implied volatility spiked to 274 percent by mid-October.
The company reported a narrower-than-expected loss i its third-quarter earnings report on Nov. 2. MannKind's next scheduled event is a presentation at the Lazard Capital Healthcare Conference on Nov. 17 along with other pharmaceutical firms such as Alkemes, which is also seeing bullish options activity.
___________________________
Options Trading School:
___________________________
MannKind Competes With:
Eli Lilly [LLY
Loading...
()
]
GlaxoSmithKline [GSK
Loading...
()
]
Novo Nordisk [NVO
Loading...
()
]
___________________________
___________________________
Mike Yamamoto is an analyst and writer for OptionMonster.
___________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes