First it was Exelixis (EXEL) (See Post Last Week) and now Amarin (AMRN).
Amarin (AMRN) shares are up 52% to $5.40 Pre Market on Positive Trial results, basically making a big splash and making it an immediate takeover target.
In a note to clients on 11/24 I wrote:
"Amarin Corp (AMRN) is an interesting case as a suspicious block of 1,000 December $5 calls is bought for $0.25 with shares at $3.60, a Biotech that is expected to report phase 3 MARINE trial data before year end, the date recently pushed up. Call volume is 10X average, but there is more than 2,000 in open interest yet. December IV of 182% compares to January at 165.3% so the data is expected to be a mover. AMR101 is for reducing elevated triglyceride levels. Results from MARINE expected by end of 2010 while ANCHOR studies will be completed by end of 2010 and reported early 2011. The $345M Biotech is targeting a multi-billion dollar market potential. On November 11th Canaccord put a $7 target on shares, a double from here. Amarin also is in discussions with potential partners."
Trading Strategy: This is one of those lottery ticket gambles like we saw in EXEL that worked out, but don't risk what you wouldn't mind losing.
Early indications are for those calls to be big gainers...He Strikes Again!
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