Market News

January 11, 2017  Wed 7:16 AM CT

A trader is extending a downside position in Kite Pharma.

Our scanners show that 2,100 January 45 puts sold for $0.30 while 2,054 February 50 puts were purchased for $3.40 yesterday. Volume was below open interest in the January contracts, indicating that a bearish position was rolled forward by a month to a higher strike that is closer to the money.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

KITE fell 1 percent to $51.99 yesterday but is up 16 percent in the last week. The biopharmaceutical company is expected to report earnings before the market opens on Feb. 28.

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