Options Trading News

July 16, 2013  Tue 3:16 AM CT

A trader is looking for Vertex Pharmaceuticals to hold firm through the end of this week.

optionMONSTER's tracking systems detected the sale of 1,856 July 82.50 puts for an average price of $0.45 in less than 4 minutes yesterday. The volume was nearly 10 times higher than the strike's open interest of just 190 contracts before the trade appeared, indicating that this is a new position.

The put seller will keep the $0.45 credit as profit if VRTX stays above $82.50 through expiration at the end of Friday's session. If it falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)

VRTX was down 1.18 percent yesterday to $86.75. The drug developer gapped up from below $53 in April on positive data regarding its treatment of symptoms related to cystic fibrosis, but shares have been trading mostly sideways since then. The company is scheduled to report its next quarterly results on July 29 after the close.

Total volume in the name topped 5,300 contracts, triple its daily average for the last month.
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