Trader bets GTX will erase big losses
Mike Yamamoto | email@example.com
optionMONSTER's Heat Seeker system detected the purchase of 3,260 October 7 calls in one print for $0.90 yesterday. This is clearly a new position, as open interest in the strike was just 51 contracts before the trade appeared.
GTXI ended yesterday unchanged at $4.48, just above their 10-day moving average. The cancer-drug developer plunged from above $7 on July 10 and again after reporting second-quarter results the next week but bounced at a support level near $4 level last week.
The calls purchased yesterday, which lock in the price where traders can buy the stock, are betting that shares will rally back above $7. But these options will expire worthless if GTXI remains below that level through mid-October. The company is expected to release data on a key drug that prevents muscle loss in lung-cancer patients in the third quarter. (See our Education section)
Total option volume topped 19,700 contracts yesterday, more than 6 times its daily average for the last month. Calls outpaced puts by nearly 2 to 1.