Ziopharm Oncology seen holding firm
Chris McKhann | firstname.lastname@example.org
ZIOP is up 4.67 percent to $4.5951, taking shares exactly back to Wednesday's close and roughly the middle of yesterday's range. Yesterday saw ZIOP open higher and then post its lowest close since Jan. 9. Shares traded above $5.60 at the start of April and have pushed lower since then, with only two closes above their 10-day moving average in that time.
More than 5,000 ZIOP options have traded so far, compared to a total daily average of 182, and all but 30 of them are July 4 puts. Nearly all of those contracts were sold, with a big print of 4,550 sold for the bid price of $0.20. The previous open interest at that strike was 139, so this is a new position.
The put selling is a bet that ZIOP will hold up above $4 through expiration. The trader also sees the shares staying range-bound, apparently believing that those puts are overpriced, and is willing to buy the stock if falls below $4. (See our Education section)