By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Savient Pharmaceuticals (SVNT) has been taken to the woodshed, but recently it's turned bullish.
On Monday, buyers jumped into the December 2 calls, with 2,000 pricing for 12 cents to 16 cents, and traders continued to snap up those contracts Tuesday. This time, another 4,100 traded with the largest block pricing for 31 cents, according to OptionMonster's real-time tracking systems.
Calls lock in the price investors pay to buy stock, so they can generate some nice leverage if the shares continue climb. But if no rally occurs, those options can expire worthless.Savient's shares fell 1.34% to $2.06 Tuesday after trading as high as $2.24 earlier in the session. The stock has come back from the dead, roughly tripling since July as small-cap drug developers have come into favor. Calls outnumbered puts by about 21,000 to 1,400, reflecting the day's bullish sentiment. Total volume was almost triple the daily average. Najarian has no positions in SVNT.