OptionsHouse

Options Trading News

February 7, 2014  Fri 9:34 AM CT

CYTR: SEE CHART GET CHAIN FIND STRATEGIES
CytRx surged on promising cancer-drug data in December, and now traders are placing a vote of confidence in the name.

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.
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

How to Defend Your Portfolio and Profit in a Market Selloff

http://bit.ly/1OSMWU6

Jon Najarian and Sandy Chaikin of Chaikin Analytics demonstrate how to play defense when the market is selling off. And, how to turn misery into money, whether investing in stocks or trading options.

Education & Strategy

The sweet spot

When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

View more education articles »