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May 1, 2013  Wed 3:47 AM CT

Repros Therapeutics has rallied hard, and one investor is adjusting a winning trade.

optionMONSTER's Heat Seeker monitoring program detected the sale of 1,850 November 17.50 calls for $5.92 in volume below the strike's previous open interest, apparently closing an existing position. The trader then bought 1,850 December 20 calls for $5.56 and sold a matching number of December 30 calls for $2.09.

The net result is that the trader collected a credit of $2.45 and stands to earn an additional $10 if the drug developer closes at or above $30 upon expiration in mid-December. The new trade is a bullish call spread, a common option strategy used by investors seeking to generate leverage. (See our Education section)

RPRX fell 0.97 percent to $20.34 yesterday but has more than doubled in the last month. That move followed positive clinical data for the company's Androxal drug for the potential treatment of male infertility.

Yesterday's option transaction lets the investor lock in profits from the rally while staying in the trade for another month.

Total option volume was triple the daily average in the session, according to the Heat Seeker. Calls outnumbered puts by more than 14 to 1.

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