VVUS: VIVUS INC. (NASDAQ) Message Board

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Biotech / Medical : VVUS: VIVUS INC. (NASDAQ)

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To: Curtis Frazier who wrote (21140)	4/22/1999 12:03:00 AM
From: Joe Fang	Read Replies (1) of 23519

Curtis..take a look at this website, see where it says C Jun99 7.5 ? It has an OI (open interest) of 3049. That's 3049 open contracts for June strike $5 as of today. Each contract leverages 100 shares of stock (so we're looking at 30490). Two implications: 1. A large call (betting that stock closes higher than 5) open interest is a "contrarian" indicator to institutional traders..."since most contract buyers are retail (the least in the know), and hence, the stock price is likely to close below or at 5 in June. 2. These call options serve as a hedge for short sellers (in case VVUS shoots up and this would provide an off setting effect on their loss (from the short position). So yes, there is interest in VVUS options, either has a hedging or a speculating tool even if the stock is traded to a very low level. JOE edreyfus.com

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