• 
• See all for optionMONSTER
• View Print Version

• What's behind put selling in Starbucks
• Cramer: There's more room to run
• Walgreen climbs on strong earnings

• EXEL 70% Rate It

Exelixis is trying to hold support in today's broad market selloff, and one investor is looking for a bounce.

optionMONSTER's Heat Seeker tracking system detected the purchase of 4,000 November 5 calls for about $1.70 and the sale of an equal number of November 7 calls for $0.70. Volume was more than 8 times open interest in both strikes.

The trade resulted in a cost of about $1 and will double the investor's money if EXEL closes at or above $7 on expiration. This call spread uses the income from selling one contract to reduce the cost of getting long closer to the money. (See our Education section)

The developer of cancer drugs is down 0.17 percent to $6.02 in morning trading. Shares were above $12 early this year, then rolled over and have been falling since.

EXEL is now back to the same level where it gapped higher last November following positive Phase 2 trial data from its XL184 compound, which could make some chart watchers expect a bounce. Management also raised revenue guidance by more than 50 percent in early August.

Overall option volume in EXEL is 16 times greater than average so far today, with calls outnumbering puts by more than 300 to 1.

Related Options Articles

• 
  Bulls are taking Lloyds to the bank
  6/19/2013 01:20 PM
• 
  Largest option buying in equities so far
  6/19/2013 11:31 AM
• 
  Stocks parked in neutral before Fed
  6/19/2013 08:12 AM