OptionsHouse

Options Trading News

April 12, 2013  Fri 9:53 AM CT

ASTX: SEE CHART GET CHAIN FIND STRATEGIES
Astex Pharmaceuticals is pulling back after spiking higher in recent months, but one trader apparently believes that the stock will hold current levels.

A trader sold 2,825 May 6 puts for the bid price of $0.40 and bought 4,175 May 4 puts for the ask price of $0.05, according to optionMONSTER systems. Volume was above open interest in the May 6s but below it in the May 4s.

This is likely a trader is rolling a short-put position higher. The May 4 puts have practically lost all of their value, so he or she is apparently left with the bet that ASTX will hold above $6 over the coming weeks. (See our Education section)

ASTX is down 1.62 percent this morning to $6.22. Shares have run up from $3 in late February and reached an intraday high of $6.47 yesterday.

optionMONSTER systems show that 7,700 ASTX options have changed hands this morning, already welll above its full-session average. 
Share this article with your friends


OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »