OptionsHouse

Options Trading News

August 20, 2013  Tue 4:14 AM CT

SRPT: SEE CHART GET CHAIN FIND STRATEGIES
Traders turned bearish on Sarepta Therapeutics as shares fell sharply yesterday.

About 6,200 September 33 puts were purchased in the session, led by a print of 5,100 that went for $2.90, according to optionMONSTER's Depth Charge tracking system. The volume was far above the strike's previous open interest of just 151 contracts, clearly showing that these are new positions.

These puts lock in the price where traders can sell the stock no matter how far it might fall. The options will track the share price closely because they are well in the money and appear to be making an outright bet that SRPT will fall, rather than hedging a long-stock position. (See our Education section)

SRPT dropped 6.57 percent yesterday to close at $30.91. The stock hit a seven-year high of $47.35 on July 22 but plummeted $10 two days later on doubts that regulators would grant an accelerated-review process for the company's muscular-dystrophy drug. Shares have continued to trend lower since then and fell sharply yesterday, apparently on new concerns over data measurement.

Total option volume in SRPT topped 27,200 contracts yesterday, more than 8 times its daily average for the last month. Overall puts outpaced calls by more than 3 to 1.
Share this article with your friends


Related Stories

SRPT

Sarepta seen holding onto recent gains

June 14, 2016

The drug developer is up 28 percent in the last week, and a large put sale is betting that shares will hold firm in the next month.

OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »