Upside Purchased on Alexza Pharmaceuticals (ALXA)

Shares of Alexza Pharmaceuticals (ALXA) are trading higher on the session by 3.37%, at $5.82; the stock touched an intra-day high of $5.93 before pulling back slightly.

ALXA has been rallying strongly over the past three months after popping through the $3.00 level in mid-August. Shares are now testing the 200-day moving average.

One trader is betting that ALXA will burst through resistance here and is buying upside calls. The January 2013 $6.00 call was purchased 3,000 times, on the offer, for $2.20. Open interest on the strike is only 2,123 contracts, which indicates new positioning here.

Overall call volume is running at 3.1x normal volume with 95% of all trades being purchases on the offer.

30-day implied volatility has jumped 5.2% today to 143.08%, further widening the divergence to near-term historical volatility at just 58.22%. 

Alexza Pharmaceuticals, Inc. is a pharmaceutical company focused on the research, development and commercialization of products for the acute treatment of central nervous system conditions.

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.