AVNR closed at $2.71 on Friday. <img src="http://4.bp.blogspot.com/_hMry1m7UF10/TIY5nhGBtPI/AAAAAAAAEjc/yv925Z9SDVo/s1600/avnr_summary.gif"> AVNR is a pharmaceutical company focused on acquiring, developing and commercializing therapeutic products for the treatment of central nervous system disorders. They have a PDUFA date Oct. 30, 2010. The company traded over 27,000 options on total daily average option volume of just 1,072. The largest trade, accounting for ~20,000 contracts was a sale of the Dec 2.5 straddle. The Stats Tab and Day's biggest trades snapshots are included (<A href="http://livevol.blogspot.com/2010/09/avnr.html">in the article</a>). The Options Tab (<A href="http://livevol.blogspot.com/2010/09/avnr.html">in the article</a>) illustrates that the calls were opening (trade size >> OI), while the puts are ambiguous. Note the vols at the top of the tab: Sep: 82 Oct: 111 Dec: 200 Even without the news about the PDUFA, it's pretty obvious that the options reflect a volatility event after the Oct options. This is an interesting trade in that there is muted risk to the downside of stock. <b>Trade Stats</b> Sell 10,000 Dec 2.5 calls @ $1.00 Sell 10,000 Dec 2.5 puts @ $1.05 So on the downside, this breaks even with the stock trading $0.45. Or, in other words, only $0.45 of downside. And, in reality, a stock rarely goes to zero even on catastrophic news, so the downside, is even less. The upside is a different story, naked short and losing after $4.55. If one were to cover that up with a Dec 5 call purchase for $0.60 the total credit drops to $1.45. The new breakeven range becomes: [$1.05, $3.95]. An alternative could be to sell the Mar'11 2.5 straddle. That vol is is 176 pricing the straddle @ ~$$2.40. If you cover up with the Dec 5 calls (DEC), the credit is ~$1.90. Bio-techs are super risky, please don't trade this naked or with "meaningful" money if at all. This is trade analysis, not a recommendation. Details, trades, prices, vols here: http://livevol.blogspot.com/2010/09/avnr.html Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>