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January 11, 2017  Wed 6:45 AM CT

Halozyme Therapeutics has been soaring, but one trader apparently believes that further gains will be limited.

Our scanners show that 3,838 February 13 calls were sold for $0.90 to $0.95 at the same second yesterday. This is clearly a new position, as open interest in the strike was just 249 contracts before the trade occurred.

Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief that gains will be limited through expiration. (See our Education section)

HALO fell 9.73 percent to $14.24 yesterday but is up 44 percent in the last week. The biotechnology firm is expected to report earnings after the close on Feb. 27.

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From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

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