Market News

November 25, 2016  Fri 8:22 AM CT

Traders are looking for Ariad Pharmaceuticals to continue its blistering run in the next week.

OptionMonster's monitoring program shows that some 2,300 Weekly 14 calls expiring on Dec. 2 were purchased for $0.25 to $0.45 on Wednesday. Volume was more than 4 times open interest at the strike, indicating that new positions were established.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

ARIA rose 3.3 percent to $13.79 on Wednesday and is up 42 percent in the last month. The pharmaceutical company's next quarterly report is estimated for pre-market hours on Feb. 23.

Overall option volume was about average in ARIA on Wednesday.

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