Spectrum Pharmaceuticals gapped higher today, and one investor is adjusting a bullish position.
optionMONSTER's Heat Seeker tracking program detected the purchase of about 2,400 August 18 calls for $0.80 and the sale of an equal number of August 16 calls for $1.72. Volume was below open interest in the 16s, indicating that a previous position was closed and rolled to the higher strike.
The trader collected a credit of $0.92 and can make further profits if the drug maker continues to rally. (See our Education section)
SPPI is up 5.37 percent to $16.47 in morning trading and more than 50 percent in the last year. Today's rally followed a report last night that its Fusilev cancer drug racked up huge sales in the month of June. The data, released by research firm Wolters Kluwer, augurs well for the company ahead of its next earnings report. Timing of the release hasn't been announced yet, but last year it occurred on Aug. 4.
Overall option volume is triple the daily average so far in the session, with calls outnumbering puts by 43 to 1.
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