CINCINNATI-Pharmaceutical concern Savient Pharmaceuticals Inc. (NASDAQ: SVNT) has rocketed out of the gate this morning, surging more than 50% to trade above the $9 level for the first time since Oct. 24. The buying spree surrounds the release of briefing documents ahead of a meeting by a Food and Drug Administration (FDA) panel to discuss approval of Savient's Krystexxa gout treatment. "The tone was very positive in the documents," Collins Stewart analyst Salveen Kochnover said in an interview. "There is really nothing unexpected in the documents."
Options traders agree, as SVNT is already being bombarded by call volume following the documents' release. Most active on the day is the June 5 call, which expires at the end of next week. More than 13,000 contracts have changed hands at this front-month strike, with open interest totaling 49,705 contracts. Yesterday, SVNT saw option volume soar to more than four times its daily average, with more than 80% of the activity crossing on the call side.
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