Why one trader is selling Celsion calls
Chris McKhann | email@example.com
CLSN fell 6.04 percent yesterday to $3.11. Shares were above $4 in early July, almost matching the two-year highs seen a year ago, and are now back to prices from the end of June.
Celsion saw 12,652 options trade yesterday compared with a daily average of 1,413, and only 730 of them were puts. The activity was almost entirely in the January 2014 4 strike, where a trader sold 9,934 calls in a single print for $0.90. The volume was 100 times the previous open interest, so it was clearly a new position.
The options were very likely sold against long shares as a covered call, which would take a maximum profit with CLSN at or above $4 at expiration. The trader would give up any gains in the stock above that level but also outperforms outright ownership of the stock with it anywhere below $4.90. (See our Education section)