Learn the trade here. Make it on tradeMONSTER

Options Trading News

July 15, 2014  Tue 9:20 AM CT

TRGT: SEE CHART GET CHAIN FIND STRATEGIES
Put buying tops the option trade in biopharmaceutical company Targacept as shares head lower.

optionMONSTER systems show that 4,075 August 4 puts have been purchased for the ask price of $0.65. This is clearly a new position, as previous open interest in the strike was just 775 contracts.

The puts aren't tied to any trading in the underlying shares identified by our scanners today, but they were very likely bought to hedge a long position in the stock. (See our Education section)

TRGT is down 7.49 percent this morning to $4.08, dropping after the conclusion of a trial on its Alzheimer's drug. The stock is highly volatile, with 10-day historical volatility of 52 percent and average implied volatility of 174 percent.
Share this article with your friends


Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER