Options Trading 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.
Share this article with your friends


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »