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Bullish option flow detected in Array Biopharma with 3,146 calls trading, 1.2x expected, and implied vol increasing over 5 points to 86.84%. Mar-19 22 calls and Jun-19 27 calls are the most active options, with total volume in those strikes near 1,900 contracts. The Put/Call Ratio is 0.12. Earnings are expected on May 8th.

Bullish option flow detected in Array Biopharma with 7,035 calls trading, 7x expected, and implied vol increasing almost 18 points to 90.96%. Jun-19 30 calls and Mar-19 30 calls are the most active options, with total volume in those strikes near 2,800 contracts. The Put/Call Ratio is 0.08. Earnings are expected on May 8th.

Aggressive post-earnings call buy in Array Biopharma. The stock down 18c to $20.78 after an 11% earnings move after reporting Tuesday morning. One player buys a 10K lot of Mar 30 calls Wednesday afternoon for 20c per contract. The contract is struck 44% above spot and expires in 37 days. 2K Jun 25 and 1.9K Mar 25 calls also changed hands. Total volume is 5X daily average at 16K calls and 1.4K puts. 30-day implied volatility is down 4.5% to 51.5 and off 32.5% since the earnings report. Next catalyst for the stock is likely to be interim analysis of the Phase 3 BEACON CRC trial during the first half of 2019.

Array Biopharma call spreads ahead of earnings. With shares $18.50, 5K Jun 16 - 20 call spreads sold at $1.95. The stock has rebounded from morning weakness and is now down 13c to $19.07. The vertical spread probably rolls a block of 5K Jun 16 calls opened for $3.20 with shares $15.60 on 11/30/18. The calls are being sold at $4.40 to monetize $600K in profits today while $2.45 per contract paid to open 5K Jun 20 calls in anticipation of additional gains through mid-2019. The Jun 20 calls, which have traded a total of 9.2K today, are struck 5% above spot and capture two earnings - including a report tomorrow morning.