Options Trading News

March 27, 2013  Wed 9:57 AM CT

Shares of Amarin bounced off a 52-week low this morning, but one trader is selling the upside.

The June 11 calls dominate the options trade. Our data systems show that a trader sold 5,000 of those calls for $0.18. The volume is twice the open interest, so this is a new position. The call selling is well out of the money, so it could be done naked with an initial bearish bias.

The naked short call has a negative delta, but can make a profit with shares anywhere below $11 at expiration. (See our Education Section.) It is also possible that the calls were sold against long shares as a covered call. That would be bullish up to the strike, but not beyond.

AMRN rose 1.94 percent to $7.10 in morning trading after hitting a 52-week low $6.77 earlier in the session. Shares were above $12 in early December before gapping down.
Share this article with your friends

Invest Like a Monster - San Antonio: October 9-10


The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »