Monday, April 4, 2011

Short selling targets: Vivus (VVUS) and Orexigen (OREX)

I want to quickly point out two short selling/put option purchasing opportunities.  Although, significant intraday drop in share price had already taken place, I believe there's still room to the downside.  


VVUS jumped 16.3% following announcement of 2-year follow-up clinical trial data, showing patients experiencing reduced blood pressure from VVUS' experimental obesity drug.  Intraday drop already amounted to 10% and there's more room to drop.  Apr $7 put options surged 218% from the falling stock off of today's peak.  Read more about Vivus announcement.  


Orexigen, a direct competitor of Vivus in the diet pill arena, also soared 22% following announcement of follow-up clinical trial data, showing patients benefiting from sustained weight loss of >10% for more than two years.  Intraday drop already added to 6.6% and more share dumping is expected in the next few days.  Apr $3 put options surged as high as 300% from the falling stock off of today's peak.  Read more about OREX press release.  

3 comments:

  1. My OREX Apr $3 put option order was filled at $0.05 (9:40 am PT).

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  2. Above options sold for $0.10 on Apr 8 - 100% return on sliding OREX price =)

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