Pacira Pharmaceuticals Inc (NASDAQ:PCRX) – Shares in specialty pharmaceutical company, Pacira Pharmaceuticals Inc (NASDAQ:PCRX), are bouncing around on Tuesday, rising as much as 2.0% in the early going, before reversing gains to trade down 2.0% at $27.84 by 12:25 p.m. ET. The company reports first-quarter earnings ahead of the opening bell tomorrow. Options changing hands on Pacira this morning suggest one trader is positioning for Pacira Pharmaceuticals Inc (NASDAQ:PCRX) shares to approach record highs in the near term. It looks like more than 1,000 of the May $30 strike calls were purchased for an average premium of $0.90 each. The bullish strategy makes money if shares in the pharmaceutical company rally 11% over the current price of $27.84 to top the average breakeven price of $30.90 by expiration next week. Shares in Pacira Pharmaceuticals Inc (NASDAQ:PCRX) are up more than 180% since this time last year.
Aruba Networks, Inc. (NASDAQ:ARUN) – The provider of network access solutions for mobile enterprise networks released preliminary third-quarter earnings and revenue numbers that missed analyst expectations, sending shares in Aruba Networks, Inc. (NASDAQ:ARUN) down 22% to $17.12 today, the lowest level since August of 2012. June expiry put options trading on Aruba this morning indicate some traders are bracing for the stock to extend losses in the near term. The June $18 strike puts attracted substantial volume, with around 1,500 in the money puts changing hands versus open interest of just 30 contracts. It looks like most of the volume was purchased during morning trading for an average premium of $1.51 each. Put buyers stand ready to profit at June expiration should shares in Aruba Networks, Inc. (NASDAQ:ARUN) decline another 3.7% to breach the average breakeven point on the downside at $16.49.
Caitlin Duffy
Equity Options Analyst
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