tradeMONSTER: Trade free for 90 days

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

Bulls bet XOMA will keep running

December 1, 2014

The drug developer broke out of an eight-month range last week, and traders are looking for the bullish momentum to continue.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER