Sanofi-Aventis is dropping after a generic version of its Lovenox anti-clotting drug was approved, and investors are throwing in the towel.
optionMONSTER's tracking systems detected heavy selling of the September 30 calls, which traded more than 6,000 times against open interest of just 641 contracts. Most of the transactions priced for $0.95 to $1.
SNY fell as much as 6 percent on the news and is now down 4.77 percent to $29.18 in afternoon trading. Today's selling follows the trend in place since the January, when the French stock peaked at $41.59.
The Food and Drug Administration approved a generic version of Lovenox that will be produced by Swiss rival Novartis. The news was somewhat anticipated by investors and SNY.
Today's call sellers are expressing a belief the shares have limited upside. They may be shareholders who are willing to exit the name for $30 and wish to earn extra income in the meantime, or by outright bears who expect the stock to remain trapped below the strike price.
SNY is also expected to report second-quarter earnings before the market opens on July 29.
Overall options volume in the name is 13 times greater than average so far today.
(Chart courtesy of tradeMONSTER)
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