Market News

December 6, 2016  Tue 7:16 AM CT

Acadia Pharmaceuticals has rallied sharply on strong quarterly results a month ago, but one large trade remains cautious.

OptionMonster's tracking program detected the sale of 4,150 January 20 puts sold for $1 and the purchase of 4,150 January 26 puts for $3.25 yesterday. Volume was below open interest in the lower contracts, indicating that a bearish position was rolled to a higher strike that is closer to the money.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

ACAD rose 2.36 percent to $27.79 yesterday. The biopharmaceutical company is up 23 percent since beating earnings and revenue estimates on Nov. 7.

Overall option volume in the name was 3 times greater than average yesterday. Puts outnumbered calls by a bearish 3-to-1 ratio.

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