Unusual Option Activity in Elan Corp.

Neuroscience-based biotechnology company Elan Corporation

lost as much as 14.7% of its value this past Tuesday following a failed clinical test for its Alzheimer's drug bapineuzumab. Friday's option activity suggests at least one investor believes the stock will hold its current price, or go higher during the remainder of 2012. The January 2013 11 put saw blocks of 27,000 and 21,000 contracts cross the tape on the bids of $1.50. There is little open interest to speak of, so these transactions will see the initiator keep the premium collected today should the shares close at $11.00 or higher on January expiration. If the shares close below this level and the position remains open, this investor would be "put" 4.8 million shares at $11.00.