Ariad Volatility Most in Russell 1000 on Drug Scrutiny: Options
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Takeover speculation, shareholder activism and regulatory scrutiny that erased about $2 billion from its share value are making options in Ariad Pharmaceuticals Inc. among the most expensive in America.
Ariad’s implied volatility, the proxy for future price movement used to price equity derivatives, was 107.7 yesterday, the highest in the Russell 1000 Index and almost quadruple the average for companies in the gauge, according to data compiled by Bloomberg on three-month contracts closest to the shares. The cancer-therapy developer lost 64 percent of its market value last year and has rallied 19 percent in 2014.