Learn the trade here. Make it on tradeMONSTER

Options Trading News

August 30, 2013  Fri 3:39 AM CT

NKTR: SEE CHART GET CHAIN FIND STRATEGIES

Traders are sticking with Nektar Therapeutics as the drug developer consolidates at multiyear highs.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 7,500 October 12 calls for $1.80. A matching number of September 12 calls was sold at the same time for $1.20 against previous open interest.

We cited the buying in the September contracts earlier this month for $1.25 to $1.35, and yesterday's transaction allowed them to extend that bet position by one month at a cost of $0.60. See our Education Section for more on how to manage trades more effectively with options.

NKTR rose 3.05 percent to $12.16 yesterday, and has roughly doubled since late November. The company has a wide array of potential medicines under development, including at least five in late-stage trials. It's spent the last two months consolidating at levels last seen in early 2011.

Total option volume was 19 times greater than average in Wednesday's session, with calls outnumbering puts by a bullish 33-to-1 ratio.

Share this article with your friends


Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER