#$auxl

VIVUS, Inc.'s Stendra lets you get it up faster

This morning VIVUS, Inc (VVUS) and Auxilium Pharmaceuticals (AUXL) announced that the FDA had approved their Stendra drug.

Stendra is the only erectile dysfunction medication that can be taken as little as 15 minutes before sex.

This is such a perfect drug for the short attention span, immediate gratification society we now live in and so kudos to VIVUS, a small cap biotechnology company, which is trading up 15% on the news.

You can now get excited before getting distracted by your mobile device.

The best thing about this ADHD age erection med, though, is the way the drug is being marketed (see image above).

"This time he was ready before they got home" with the amorous couple still in the car.

AUXL activity STRONGLY suggests someone knew about this deal ahead of today's 45% pop.  Background: AUXL was pursuing an inversion play and was the acquirer in same. So it would be strange indeed to see either heavy call speculation or massive put buying (when coupled with stock purchase this is a synthetic call). However, our HeatSeeker shows both into today's market action.  The Auxilium Pharmaceuticals average daily call trade was 950 contracts and average put volume was 540 contract for the prior 30-days.  However, last Friday (9/12) AUXL puts traded 10,652 contracts or 20 times normal volume. The January 17.50 puts were purchased in large, institutional size, indicating to us that whomever bought these puts created a synthetic call option (long put, long stock = synthetic call). Given that they did this 9,500 times, this is a 950,000 share potential windfall as shares spike $9.54 or a profit of $9.06 million! The call action is likewise suspicious,  as 1,900 calls or 2X normal activity traded on September 11th and these calls, bought in size also indicate some info about the takeover of AUXL leaked or was acted upon by insiders. Here are both Calls & Puts our HeatSeeker tagged: