Options Trading News

December 19, 2012  Wed 3:47 AM CT

Aegerion Pharmaceuticals popped yesterday and drew the same call spread for the second day in a row.

optionMONSTER's systems show that a trader bought 3,000 January 25 calls for $1.50 against open interest of 1,666 contracts and sold the same number of January 30 calls for $0.30 against open interest of 1,305 yesterday. We saw the same vertical spread in the previous session. (See our Education section)

AEGR gained 3.83 percent on Tuesday to close out the session at $23.30, its highest close in more than a year. Shares bounced at support at $20 two weeks ago and from deeper support at $14 in mid-October.  

Overall option volume in the name totaled 11,960 yesterday, compared with a daily average of only 660.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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