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March 20, 2013  Wed 11:44 AM CT

GSK: SEE CHART GET CHAIN FIND STRATEGIES
GlaxoSmithKline has had a nice pop, but now traders are turning bearish on the British pharmaceutical stock.

optionMONSTER's Depth Charge tracking program detected the purchase of about 5,700 April 45 puts, most of which priced for $0.45. Volume was more than quadruple previous open interest at the strike, indicating that a new position was initiated.

Those contracts lock in the price where shares can be sold. That is a strong inverse correlation to the stock price, meaning the puts will appreciate in value if GSK heads lower. (See our Education section)

Less than an hour later, some 2,300 April 47 calls were sold for $0.35 as an investor abandoned a bullish trade.

GSK is up 0.3 percent to $45.90 in afternoon trading. Our scanners detected unusual activity in the March 45 calls earlier in the month, handing traders quick profits as the shares bounced, but they've now returned to the same $46 level where they peaked in January and February. That could make some chart watchers believe that they're stalling at resistance.

Total option volume is 6 times greater than average in the name so far today, with puts outnumbering calls by almost 3 to 1.
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