February 29, 2016 / 10:05 PM / in 2 years

BUZZ-Options traders brace for more pain at Valeant

** Options traders add to near-term bearish bets as Valeant Pharmaceuticals International Inc’s U.S.-listed shares fall to 3-year low of $63.75 on Monday, on news that drugmaker is under investigation by the U.S. SEC

** Valeant says it is subject of several ongoing investigations, including the U.S. attorney’s offices for Massachusetts and New York, SEC

** Options volume jumped to 101,000 contracts, or 2x the avg daily volume, according to Trade Alert

** Bulk of options activity bearish as traders appear to bet on further near-term losses

** Put options betting on Valeant’s U.S.-listed shares dipping below $60 and $50 by Friday among the most heavily traded contracts

** Risk of large near-term move for shares high; 30-day ATM implied volatility jumps to 114 pct, up from 90.49 pct on Friday, close to a 52-week high, according to Trade Alert

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below