Options Trading News

January 18, 2013  Fri 9:39 AM CT

Traders are positioning for continued low volatility in Navidea Biopharmaceuticals.

More than 5,800 NAVB options have traded so far today, compared to a total daily average of 374 in the last month. The bulk of that volume came in a single call sale.

A trader sold a single block of 4,879 July 3 calls for $0.60, below the listed bid price at the time. Open interest in the strike was just 285 before today's trading began, so this is a new position.

The options weren't tied directly to any trading in the underlying shares identified by our systems today. But given that these contracts were struck at the money, it is very likely that the calls are sold against long shares.

That would result in a covered call position would be looking for low volatility, with NAVB remaining around this $3 level. (See our Education section)

NAVB is at $3 exactly this morning, unchanged on the day and continuing to trade in a tight range in place since the beginning of the year. Shares climbed from a low of $2.14 set in mid-November after hitting a high of $4.77 in July.
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I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

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