Traders were quick to jump on the news that ICN Pharmaceuticals' nebulized version of their drug Ribavirin is useful in battling Severe Acute Respiratory Syndrome (SARS). (New word for the day: nebulize means "to reduce to a fine spray" [Latin nebula]). The stock closed up over 17% on about 10 times normal volume after the news hit the wire this past Tuesday.

It looks like most of the trading that took place in the stock happened over $10, so anyone still carrying this trade is looking at a steep loss. The folks who tried to buy in the next morning (Wednesday) are facing the worst losses of course.

It usually doesn't pay to try to play news like that, especially if you're not a full-time trader who can monitor the action in real-time and manage a quick exit when things go wrong.

Experienced players prey on people who think to themselves, "Gee, maybe I should pick up some ICN first thing tomorrow at the open." Professional traders have paid for countless BMWs and houses in the Hamptons by taking the other side of market orders to buy at the open.

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