NEW YORK (AVAFIN) -- Elan Corporation, options contracts experienced a new 90-day record for call contracts where a total
of 18,450 call contracts were traded in the busy trading session. The contract spread
yielded a 0.53 put/call ratio where 1.9 call contracts were traded for each put contract.
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Put/Call ratio is often used to measure investor sentiment, the ratio serves as a predictor of
investor behavior. A high put/call ratio suggests that the investor sentiment is bearish and
that investors expect the underlying stock to decrease in value. In contrast, a low put/call
ratio suggests that the investor sentiment is bullish and that the underlying stock is expected
to increase in value. Unusual volume provides reliable clues that the stock is expected to
make a move.
Elan's BioNeurology business received a boost when it drew J&J to take the reins of its Alzheimer's immunotherapy program (including lead candidate bapineuzumab) and establish an 18% equity stake in Elan.
Additionaly, Now that a standstill agreement between Elan and Biogen Idec has expired, Biogen could offer a premium to Elan shareholders to take full control of Tysabri.
ELN is trading above the 50 day moving average and higher
than the 200 day moving average. Shares of Elan Corporation, closed at $13.93, up $0.14 (+1.02%)
in the last trading session. Today's volume of 3M shares is greater than the
average volume of 2M shares.