Options Trading News

October 3, 2013  Thu 2:45 AM CT

An enormous put sale dominated yesterday's option activity in Cell Therapeutics.

A trader sold 10,000 December 1.50 puts in one print for $0.20, according to optionMONSTER systems. That compares to total open interest of 7,473 at all strikes, so this is clearly a new position.

The put seller is looking CTIC to stay above that $1.50 mark through expiration in mid-December. The trader also risks having to buy shares if they fall below that strike price. (See our Education section)

CTIC finished yesterday unchanged at $1.66, continuing to trade in an increasingly tight range. Shares of the cancer-drug developer were down at $1.10 three weeks ago.

The put sale made up almost all of CTIC's 10,198 total contracts yesterday, which was 25 times its daily avearge for the last month.
Share this article with your friends


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »