Vote of confidence in Pharmacyclics
Mike Yamamoto | [email protected]
optionMONSTER's tracking systems detected the sale of 2,000 May 36 puts in one print for $1. Open interest in the strike was just 36 contracts at the start of the session, so this is a new position.
PCYC is up 2.89 percent to $60.50 this morning after popping at the open. The company today reported positive findings in its Phase II trial of its ibrutinib drug, a proposed oral treatment for a form of lymphoma.
The stock gapped down from above $61 at the beginning of November but has been climbing since then. It rose above its 50-day moving average yesterday and above its 100-day average today.
Today's put seller is betting that PCYC will hold above the $36 strike price through expiration in mid-May 2013. The trader faces the obligation to buy the shares if the stock is below that level, but at an effective price of $35 once the credit from the put sale is included. (See our Education section)