Bears doubt Raptor will be flying soon

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Raptor Pharmaceuticals got slammed last week, and traders are betting against a quick rebound.

optionMONSTER's tracking systems detected the sale of 3,000 September 5 calls against open interest of just 342 contracts. Premiums fell from $1.05 to $0.95 as the trades crossed, and the shares dropped simultaneously, which reflects the strong selling pressure.

RPTP fell 2.84 percent to $5.48 yesterday. The drug developer roughly doubled between May and last month. It then plunged on July 25 after announcing its DR Cysteamine was found to be equivalent to the existing treatment for a rare kidney disorder known as nephropathic cystinosis.

The drop appears to have been a case of investors "selling the news" after a run-up in the share price. Monday's call selling is also consistent with a belief that RPTP won't make new highs in the next two months.

Overall option volume in the name was about triple the daily average in the session.



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

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