Options Trading News

November 15, 2012  Thu 2:14 AM CT

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


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 »