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April 11, 2014  Fri 11:13 AM CT

A large trader is looking for a sharp move in Horizon Pharma.

optionMONSTER systems show that 5,000 May 13 calls were purchased for $1.55, above the listed ask price at the time on an already-wide bid/ask spread. This is clearly a new position, as the previous open interest at that strike was just 167 contracts.

Less than 2 minutes after the calls were bought, the session's biggest block of HZNP stock traded as 250,000 shares were sold for $12.60. That exactly matches the delta of the calls, so this is a directionally neutral play that is looking for a sharp move in either direction and/or for volatility to be higher than that implied by the options' price. (See our Education section)

HZNP is off fractionally at $13.02 in midday trading. The arthritis-drug developer briefly traded above $18 three weeks ago at a record high. The stock has been trending higher since August, when it was as low as $2.11.
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