Bulls charge into Keryx at highs
Mike Yamamoto | [email protected]
More than 3,000 November 10 calls were purchased for $1.05 to $1.65 yesterday, including a single print of 2,475 that went for $1.15, according to optionMONSTER's Heat Seeker tracking system. The volume was above the strike's previous open interest of 1,501 contracts, indicating that these are new long calls looking for KERX to rally in the next two months.
Later in the day, 2,500 December 8 puts were sold for $0.95 and $0.90 in volume well above previous open interest of 701 contracts. The put sale is looking for KERX to stay above $8 through expiration in mid-December, but the trader will be on the hook to buy shares it they fall below that level. Our scanners detected another large put sale in the October 8 strike last Thursday. (See our Education section)
KERX jumped 7.64 percent to finish yesterday's session at $10 even, its highest close since October 2007. The kidney-drug developer has been holding support at its 50-day moving average since early July, the last time it closed below $8.
Total option volume in the name surpassed 13,000 contracts, more than 15 times its daily average for the last month. Overall calls outnumbered puts by 3 to 1.