Bausch Health Companies Inc (BHC)

[UnderOath-KY]

Valeant Pharmaceuticals International, Inc. (VRX)

VRX options speculators have a smorgasbord of events on the horizon this month. First, Valeant’s new glaucoma treatment, Vyzulta, goes on sale for the first time this month, and analysts have high hopes for the treatment. Second, the FDA is set to decide the fate of Valeant’s Luminesse treatment for ocular redness by Dec. 27.

Optimism is rising ahead of both events, as evidenced by the recent attention to VRX call options. On Monday, VRX saw volume spike to 156,000 contracts, or nearly double Valeant’s daily average. Calls made up an impressive 65% of the day’s take.

Furthermore, that optimism has extended into January 2018, where the put/call OI ratio has fallen to a reading of 0.76. That said, expectations remain tempered, as peak call OI for the series rests at the in-the-money $17.50 strike, followed by the also in-the-money $19 and $20 strikes.