Learn the trade here. Make it on tradeMONSTER

Options Trading News

November 27, 2012  Tue 9:58 AM CT

CTIC: SEE CHART GET CHAIN FIND STRATEGIES
Cell Therapeutics is struggling to gain ground, and one large trader is looking for a floor beneath the stock.

optionMONSTER's systems show that a trader sold 10,000 June 1 puts for the $0.20 on a wide bid/ask spread. There was no previous open interest, so this is a new position.

CTIC is flat on the day at $1.42. The cancer-drug developer was down at $1.14 earlier in the month, its lowest price since gapping up at the start of September from $0.45 to above $2.

The put selling is a bet that that CTIC will remain above the $1 strike price in coming months. The trader faces the possibility of having to buy shares if they are below that level, but at an effective price of $0.80 including the credit from the put sale.  (See our Education section)
Share this article with your friends


Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER