Upside Active as Isis Pharma Falls (ISIS)

Shares of Isis Pharmaceuticals (ISIS) have been careening lower over the past three weeks, culminating in a high volume push to new 3-month lows.

With shares off 42% in a little over four week, one trader is buying upside here. Shortly after the opening bell, the January 2013 $9.00 call was purchased 1,200 times, near the offer, for $1.20. Seconds later, the Jan13 $10.00 call was sold 1,883 times, on the bid, for $0.80.

Given the respective open interest on both strikes, 309 and 1,153 contracts, this appears to be a fresh put (ratio) spread. The trade has pushed overall call volume to 3.7x normal volume.

30-day implied volatility is steady today, at 70.69%; 10-day realized vol is registering 130.15%.

Isis Pharmaceuticals, Inc. is engaged in antisense technology, exploiting a drug discovery platform to create a pipeline of drugs. 

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.