CytRx gets a vote of confidence
David Russell | [email protected]
optionMONSTER's marker scanners detected the sale of 5,000 March 5 puts for $0.25. Volume was more than 7 times previous open interest, which indicates a new position was implemented.
The investor is now on the hook to buy shares for $5 if they're below that level on expiration six weeks from now. Above it, they'll keep the premium as profit. (See our Education section for more on how to make money selling puts.)
CYTR is up 1.66 percent to $6.75 in morning trading. It announced on Dec. 11 that a phase II trial showed its aldoxorubicin drug was twice as effective as traditional chemotherapy in the treatment of soft-tissue sarcoma. The stock more than tripled by late January but has been pulling back since.
Total option volume is almost 3 times greater than average so far today.