Valeant Social Volume The Day After Its SEC Reveal Was 5X Normal

The social volume of Valeant Pharmaceuticals Intl Inc VRX the day after it revealed it was under investigation by the Securities and Exchange Commission was five times the normal, according to Trade-Ideas.

Social volume is 629 percent more than normal, with normal being 238 tweets on average.

According to Trade Ideas, there's unusual high activity in the options for VRX trading Tuesday more than 3x (140k) its normal, average option volume (40k). Call volume outpaced Put volume on Tuesday indicating a bet to the upside. This stance is further supported by the small percentage of the stock's float sold short (4.8 percent).

It comes after the recent decline that saw a 28 percent fall over the last 20 trading days. Tuesday's activity suggests a base of support laying a foundation for the next move upward.

Valeant stock is under severe investor pressure as the Canadian pharma company is facing issues including the delayed filing of its 10-K, a potential earnings restatement and a withdrawn 2016 outlook, along with an SEC probe reveal earlier this week. Shares have dropped 36 percent this year.