Achillion Pharma draws bullish bet

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One investor is taking profits in Achillion Pharmaceuticals while looking for its recent rally to continue.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 3,000 October 10 calls for $0.90. An equal number of October 7.50 calls was sold at the same time for $2.40, but volume was below open interest in those contracts.

It appears that the trader had made money owning the 7.50s and closed that position while rolling it to the higher strike. He or she collected a credit of $1.50 in the process while remaining exposed to further upside.

ACHN is up 2.31 percent to $9.73 today and more than 65 percent since early August. The developer of hepatitis C drugs has been climbing amid bullish analyst comments toward its pipeline and as big investors put money to work in the name.

Overall option volume is 7 times greater than average so far today, with calls accounting for more than 80 percent of the total.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: ACHN

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