Wall Street is abuzz today with talk that Allergan may be on the block. Options traders have snapped up 13,000 April contracts--yep, that's 13,000, way beyond the normal volume. Apparently, they were set in motion by a web report that GlaxoSmithKline might be interested in the Botox-maker.
At press time, Allergan stock was up around 10 percent to over $47--after leaping by 13 percent earlier in the day, exceeding its 50-day moving average. Drug stocks in general were up, so some of Allergan's rise could be overall market pressure. And it's true that some analysts have tagged Allergan as a buy lately. And Fast Money yesterday recommended an Allergan buy for first thing today.
But professional traders are the options-buyers that swooped in for those thousands of contracts--and that's not a standard-issue up-market move. So what's going on? GSK won't comment, and Allergan won't either.
- see the story [1] at Option Monster
- get more [2] from The Street
- read the brief [3] at MarketWatch
Related Articles:
Bristol, Allergan chiefs nab big raises [4]
Anticipating sales declines, Allergan cuts 460 [5]
FDA approves Allergan's eyelash-growth drug [6]
Cosmetic pharma remains steady in downturn [7]
Links:
[1] http://www.optionmonster.com/news/article.jsp?page=commentary/in_the_news/allergan_calls_rise_amid_ma_hints_32185.html&cookie_test=0
[2] http://www.thestreet.com/story/10476304/1/allergan-call-buying-surges-options-show.html?cm_ven=GOOGLEFI
[3] http://www.marketwatch.com/news/story/Allergan-soars-takeover-speculation/story.aspx?guid=%7BA2BD7FBC%2D2E0F%2D4D76%2DA1C0%2D8922C1E4EE38%7D
[4] http://www.fiercepharma.com/story/bristol-allergan-chiefs-nab-big-raises/2009-03-24
[5] http://www.fiercepharma.com/story/anticipating-sales-declines-allergan-cuts-460/2009-02-04
[6] http://www.fiercepharma.com/story/fda-approves-allergans-eyelash-growth-drug/2008-12-27
[7] http://www.fiercepharma.com/story/cosmetic-pharma-remains-steady-downturn/2008-12-24