ACADIA Pharmaceuticals (ACAD) is a bio-pharmaceutical company that was founded in 1993 and is headquartered in San Diego, CA. The company specializes in developing drugs aimed towards treating neurological and central nervous system disorders, including Parkinson’s, Alzheimer’s, and schizophrenia. ACADIA had some disappointing Q4 numbers and reported losses of $28.4 million compared with a $12 million dollar loss for the same quarter in 2013. Overall, its total losses for 2014 were around $92.5 million. However, things seem to be turning around for the company this year as its newest drug, NUPLAZAID, was granted “Breakthrough Therapy” designation by the FDA and the company is looking to launch the drug in the United States sometime in this calendar year as well as seek authorization for approval of the drug in Europe as well.
That’s not the only good news either as ACAD is name we flagged today for unusual options activity with a trader buying 1000 March 44 ACAD calls for $.60. The 1000 calls was three times the open interest and the stock is currently trading above the Ichimoku cloud indicating a very bullish outlook. The bio-pharmaceutical company, which is headquartered in San Diego, CA is currently trading at an all time high. After closing yesterday at $38.93, the stock has rallied just over 17% and currently sits at $45.60 (as of 2:07 EST), leaving the calls the trader bought earlier squarely in the money. The jump in price sets the stock up for a very bullish outlook in the future.
Trade: A trader bought 1,000 ACAD March 44 calls for $.60
Risk: $60 per 1 lot
Reward: Unlimited
Breakeven: 44.60
These calls have already traded as high as $3.80 on the day making this another absolute blowout winner to hit OptionHacker. If a trader bought a 20 lot of these calls they would have profited $6,400
Andrew Keene
President/Founder
KeeneOnTheMarket.com
