Bull won't give up on Flamel Tech

By David Russell,

Shutterstock photo

Flamel Technologies has been drifting lower for more than a year, but one bull isn't giving up hope.

optionMONSTER's Heat Seeker tracking system detected the purchase of 8,713 July 2.50 calls for $3.35 and the sale of an equal number of June 2.50 calls for $3.30. Volume was below open interest in the June contracts, which indicates that an existing position was rolled from one strike to the next.

The trade gives the investor an additional month of long exposure to the thinly traded, money-losing French company. FLML has two drug-delivery systems and has been signing deals with pharmaceutical companies in hope of eventually monetizing its technology. But revenue was weaker than expected the last time it issued results on May 9, and management conceded it was unable to time when the situation will improve.

FLML rose 0.52 percent to $5.78 in late morning trading and is down 15 percent in the last year.

Overall options volume in the name is more than 50 times greater than average so fat today.

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

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing Options
Referenced Stocks: FLML

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