Latest Updated Options Activity for Friday, June 11, 2010



Calls are the options of choice for Thursday on both ARM Holdings plc (ARMH) and MannKind Corporation (MNKD), with both equities racking up unusually heavy volume. This volume seems to be running into today as well. However, while MNKD's speculators appear to be opening new positions, it looks as though ARMH traders are looking to lock in profits as the stock enjoys a rumor-related boost.

Call volume has ballooned from the norm on ARMH. One of the most active is the July 10 call. The majority of these contracts has traded between the bid and ask prices, making it difficult to determine whether they were bought or sold. However, with ARMH tapping fresh annual highs, it's possible that traders are taking profits on these in-the-money options. The stock is attracting plenty of attention after rumors resurfaced that Apple Inc. (AAPL) might be pondering a buyout bid.

However, a spokeswoman for ARMH said that no offer has been made, and added for good measure that such a deal wouldn't even make sense.



As for MNKD, call activity has surged to expected level, with many being bullishly oriented options changing hands. The equity's June 7 strike is the center of attention. With 95% of these calls trading at the ask price, and implied volatility up 7.9% at last check, it looks as though new bullish bets are being added.

Speculators are taking their cues from Thursday's drug data, with MNKD reporting that a trial for its Afrezza insulin treatment showed "non-inferiority" to standard insulin therapies. The stock was up more than 8% that afternoon, but MNKD's positive momentum has so far been capped by pressure from its 10-week moving average.





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