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.
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