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Bulls come back to Spectrum Pharma

By optionMONSTER,  June 25, 2012, 05:10:46 AM EDT

The bulls are coming back to Spectrum Pharmaceuticals.

optionMONSTER's Heat Seeker monitoring system detected the purchase of more than 5,000 August 16 calls, most of which priced for $0.75 to $0.80. Volume was more than 5 times open interest in the strike.

SPPI rose 3 percent to $13.90 on Friday. It more than doubled between October and January amid spreading use of its Fusilev cancer drug and then pulled back sharply into April. Results have remained strong since then, and the shares have resumed their rally.

The stock peaked around $16 earlier in the year, so Friday's call buyer is apparently looking for it to run back to that level in the near term. Overall option volume was 6 times greater than average in the session, with calls outnumbering puts by almost 5 to 1.

The Heat Seeker also detected trades in the August 14 calls for $0.75 earlier in the month . Those have now doubled in value.




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.


This article appears in: Investing, Options

Referenced Stocks: SPPI



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