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For starter, I just have a vague understanding of call, it is people expect the price to go up at a future day. In other words, they can get buy the stock at that future level with the current price. On the other hand, they can also trade the option as a regular stock. Am I correct? If so, this high call volume might indicate the general sentiment of a favorable fda ruling. Ruling on what? BDNF? I am doubtful, since the phase III data has not been anounced. Maybe there's something eles down the pipe. BTW Patrick, do you notice any insider option selling and buying? One more thing, is this possibly what people called hedging? i.e., buying the call, which is relatively cheap, you are guaranteed not to miss any upside swing; yet, if the stock really freefalls, you just sell your option, taking just a little loss. --Chuck |
