tradeMONSTER: Trade free for 90 days

Options Trading News

November 15, 2012  Thu 2:14 AM CT

PLX: SEE CHART GET CHAIN FIND STRATEGIES
One trade is betting that Protalix Bio Therapeutics will hold current levels for the next several months.

optionMONSTER's systems detected the sale of 2,000 May 5 puts, led by a block of 1,912 that went for $0.60. Open interest in the strike was a mere 9 contracts at the start of the session, so this is a new position.

The put seller is looking for PLX to stay above $5 at expiration in mid-May. Below that level, the trader faces the obligation to buy the stock at an effective price of $4.40 once the credit from the put sale is taken into account. (See our Education section)

PLX closed fractionally higher yesterday at $5.33. The biopharmaceutical company spiked higher from below $5 in the previous session on reports that it is on the verge of a deal that would allow it to sell a treatment for a rare genetic disesase on the Brazilian market. The stock broke above its 50-day moving average on that move and is now trying to hold above its 100-day line.
Share this article with your friends


tradeMONSTER: Trade free for 90 days

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER