How one bull is sticking with Nektar
Mike Yamamoto | [email protected]
A trader sold 5,000 May 8 calls for $1.90 against open interest of 9,041 contracts and, at the same second, bought 5,000 May 11 calls for $0.60 against open interest of just 36 at that strike, optionMONSTER's tracking systems show.
The trader appears to be closing the May 8 contracts, which are now in the money, and buying the May 11s. This call roll allows the trader to collect the premium from selling the lower-strike options and profit from any further gains above the $11 strike. (See our Education section)
NKTR surged 7.89 percent to $9.43 yesterday. Shares of the clinical-stage biopharmaceutical company hit resistance at the $11 level in October and then plunged below $6 by mid-November. But the stock rebounded sharply at the end of the year and last week surged through its 200- and 100-day moving averages.
Total option volume in the name exceeded 18,700 contracts, compared with a daily average of just 221 in the last month. Only 13 NKTR puts changed hands in the entire session.