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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I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

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