OptionsHouse

Options Trading News

November 1, 2013  Fri 3:47 AM CT

XOMA: SEE CHART GET CHAIN FIND STRATEGIES
Drug developer XOMA is drawing a large call trade ahead of its earnings report next week.

A trader sold 6,000 December 5 calls for the bid price of $0.40 against previous open interest of 8,874, according to optionMONSTER systems. Just before, a block of 6,000 June 5 calls was bought for the ask price of $1.55 in volume far above the open interest of just 94 contracts, so that is a new position.

This could be a new calendar spread established for $1.15, which would be looking for XOMA to settle in around $5 in coming weeks. Alternatively, it could also be a roll, with the trader buying more time for the stock to push back to new highs. (See our Education section)

XOMA gained 3.2 percent to $4.51 yesterday. The company, which is involved in antibody-based therapeutics, was at a high of $5.54 at the start of the month.

More than 17,800 XOMA options changed hands overall yesterday, 14 times its average daily volume. Of those contracts, only 265 were puts.

The company is scheduled to release third-quarter results on Nov. 7 after the close.
Share this article with your friends


Related Stories

XOMA

How the bulls are playing Xoma

July 2, 2015

The drug developer is trying to establish commercial uses for its gevokizumab anti-inflammatory antibody and has four potential applications in Phase 3 trials.

Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »