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September 18, 2012  Tue 9:57 AM CT

Alkermes reached a six-year high this morning, but a trader apparently believes that further upside will be limited.

ALKS trades at $19.62, up 0.7 percent on the day. The biotechnology company hit $20 this morning, matching an intraday high from July of 2012 and 2011 that has been resistance going back to June 2006.

A trader sold 2,500 November 21 calls for the bid price of $0.45 on a wide bid/ask spread, according to optionMONSTER's data systems. The volume was more than 12 times the open interest in that at the beginning of the day, so this is a new position.

The trader betting that ALKS won't gain much above that price before the November expiration. The calls may have been sold naked with an initial bearish bias or traded against long shares as a covered call, which would be bullish up to the strike price but not beyond. (See our Education section)
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