On Thursday, the Fast Money traders are expecting a big move from this stock. Is it on your radar?
Specifically, the pros are watching Vivus
[VVUS Loading... () ] after the company received a favorable ruling on its weight loss drug Qnexa. Back in 2010, the FDA rejected Qnexa because of safety concerns.
As bullish as that catalyst is – pro trader Guy Adami sees another reason for the stock to surge.
“There’s something like 20% short interest in Vivus,” he explains. “Expect the shorts to get squeezed. As a result the jump in this stock may be larger than anticipated."
And that’s where the trading opportunity comes in – but you have to be nimble. The Fast traders thinks the stock could overshoot to the upside.
“The stock could over pop early and then have a really big pullback,” says Pete Najarian. In other words if there's an extreme move trade accordingly.
Qnexa, which combines the appetite suppressant phentermine and anti-seizure drug topiramate, helped patients lose at least 10 percent of their weight after a year of treatment, the company said.
The FDA has not approved a new obesity drug since 1999.
Current DateTime: 04:40:11 23 Feb 2012
LinksList Documentid: 26256943
Current DateTime: 04:40:11 23 Feb 2012
LinksList Documentid: 26256941
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Trader disclosure: On Feb 22, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long AAPL; Najarian is long C; Najarian is long YHOO; Najarian is long HPQ; Najarian is long MOS; Najarian is long SCCO; Najarian is long COP; Najarian is long PFE; Najarian is long MRK; Adami is long C; Adami is long GS; Adami is long INTC; Adami is long MSFT; Adami is long NUE; Adami is long BTU; Adami is long AGU
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Kass is short SPY common and calls
Kass is short QQQ
Kass is short IWM
Kass is short EFA
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CNBC.com with wires.
© 2012 CNBC.com
