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


Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »