Shorts are fukced!... leak:
UPDATE 1-Sequenom shares surge on Down Syndrome test chatter
2 hours ago - Reuters
(Recasts, adds company comments, updates options volume)
By Shailesh Kuber and Doris Frankel
BANGALORE/CHICAGO, Aug 31 (Reuters) - Shares of Sequenom Inc (SQNM) shot up 17 percent on Monday amid speculations that the genetic analysis products maker may soon release positive results on its prenatal Down Syndrome test.
"There is chatter about possible news regarding favorable results from a medical study that might benefit the company," said Frederic Ruffy, options strategist at Web information site WhatsTrading.com.
"Traders appear to be looking for more upside in the shares and are buying September $6 and $7.50 calls," he added.
In April, the company delayed the launch of the SEQureDx test, citing mishandling of research and development test data and results by employees, and had initiated an independent investigation into the matter.
In afternoon trade, about 30,000 call options traded in the stock, three times its normal daily volume and nearly 10 times the number of its put options, according to option analytics firm Trade Alert.
Investors often turn to equity call options -- granting the right to buy a company's shares at a fixed price within a specified time period -- to speculate on potential share price appreciation.
An equity put option conveys the right to sell the stock at a given price and time.
Auriga USA analyst Raj Mehra said there were rumors in the market about positive data from the study on the company's Down Syndrome test.
When contacted, a Sequenom spokesman said, "It is the company policy not to comment on rumors in the market place."
Shares of the company were up 62 cents at $5.90 in afternoon trade. They rose to as much as $6.19 earlier in the session. (Editing by Maju Samuel and Gopakumar Warrier)
Need more time... I wish the markets were open 24 hours a day....
AI
