Questcor Pharmaceuticals (NASDAQ: QCOR) fell sharply Wednesday after short seller Citron Research highlighted a note from insurer Aetna (AET) which drastically reduces the number of approved uses for Questcor drug Acthar from 19 to one.
An October 40/45 Out of The Money Bear-Call Credit Spread looks like an attractive way to play QCOR today. This strategy aims for a return of 8.7% and QCOR is 19% out of the money. Recent support for this stock has been demonstrated near $48.27 while resistance has been around $53.75.
Questcor Pharmaceuticals is trading today at $33.59, down $16.93 (-25.1%) from yesterday’s close. The stock began the day trading at $50.53 and has moved between $22.26 and $50.90. [MarketIntelligenceCenter.com]