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May 24, 2013  Fri 10:02 AM CT

Vivus is continuing to run higher, but a put trade tops today's option activity in the biopharmaceutical company.
optionMONSTER systems show that a trader bought 2,650 July 13 puts for $0.75 in volume well above the previous open interest of 273, indicating new activity. At the same time, he or she sold the same number of July 12 puts for $0.38 against open interest of 5,816, so that could be a opening or closing transaction.

If the latter is a new position, then the overall trade is a vertical spread that cost $0.37 to open. The maximum potential profit of that trade would be $0.63.

If the July 12 contracts were sold to close a position, then the trader is rolling the puts to a higher strike. That would increase the delta of the options to 0.29 from 0.17.

Either trade could be hedging a long stock position. (See our Education section)

VVUS is up 3.79 percent to $15.05 this morning. It has gained each day this week after opening Monday at $12.26. Yesterday the stock posted its highest price since mid-January.
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