Arena Pharmaceuticals has started to break out of its resistance and is now heading higher.
One of the early catalyst was ARNA signing up with a marketing or sales partner.
And the second catalyst is FDA assessment of Vivus drug potential ( Note : Vivus is ARNA competitor).
The key thing to note here is good news for any of the drug company is good news for the industry. In this case, Vivus, ARNA will benefit from the same positive news.
Currently, ARNA is trading at around 4.39 and I believe there is still time to play this game. I recall ARNA is only due for review in September.
Myself, I have bought Oct $3 CALLs way back in May-June period.
Do note that as with all stocks that relies on FDA approval, there is a high chance that things do not work out well and the price will head south.