Market News

September 27, 2013  Fri 10:36 AM CT

A call spread tops today's option activity in biopharmaceutical company Geron.

optionMONSTER systems show that a trader bought 3,000 November 3 calls for the ask price of $1.05 and sold the same number of November 5 calls for $0.25. The volume was more than open interest at each strike, so this is a new vertical spread.

The trader spends $0.80 on this in-the-money spread. The maximum profit of $1.20 would be realized with GERN at or above $5 at expiration. (See our Education section)

GERN is up 8.66 percent to $3.64 this morning, its highest level in two years. Shares were down at $1.50 just three weeks ago.

About 8,800 GERN options have changed hands, compared to the daily average of 3,232 in the last month.
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