Options Trading News

December 18, 2012  Tue 3:47 AM CT

A long-term bearish play is apparently betting that Immunomedics will revisit levels where the drug developer traded more than three years ago.

About 1,350 January 2014 2 puts were purchased for $0.35, optionMONSTER's Depth Charge system shows. The volume was above the strike's open interest of 831 contracts at the start of the session, indicating that this is fresh buying.

IMMU rose 1.36 percent yesterday, or $0.04, to close at $2.98, not far from its lows of the year. The biopharmaceutical company's shares have traded in a tight range all year, mostly between about $2.90 and $3.90.

The put buying wasn't tied to any stock trades identified by our systems yesterday, so it could be a straight bearish position looking for IMMU to fall roughly 45 percent by expiration in January 2014. The stock has not seen prices that low since May 2009. (See our Education section)

Total option volume in the name yesterday was more than double its daily average for the last month. Only 166 calls traded in the entire session, a reflection of the day's bearish sentiment.
Share this article with your friends



The fastest money in the market
View full report »

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 »