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September 23, 2016  Fri 8:22 AM CT

AGN: SEE CHART GET CHAIN FIND STRATEGIES

A large investor is extending an upside position in Allergan to early next year.

optionMONSTER's monitoring program shows tha 5,000 November 260 sold were for $3.60 while 5,000 January 260 calls were purchased for $7.80 yesterday. Volume was below open interest in the November contracts, indicating that a bullish position was rolled forward by two months.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

AGN rose 2.11 percent to $243.43 yesterday but is down 6 percent in the last month. The drug maker is expected to announce quarlast quarterly results in pre-market hours on Nov. 3.

Overall option volume in the name was twice its daily average yesterday.

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