Sarepta Therapeutics has been holding its ground for months, and
now the bulls are looking for the next leg higher.
optionMONSTER's tracking systems detected the purchase of about
2,500 March 25 calls, with the largest block pricing for $4. A
short while later, a similar number of April 30 calls were bought
for $3.20 to $4.70. There was barely any open interest at either
strike, indicating that new money was put to work on the long side.
lock in the price where investors can buy shares, so they can
generate significant leverage in the event of a rally. But they're
also susceptible to losing most or all of their value if the stock
doesn't move. (See our
SRPT rose 4.98 percent to $27.61 yesterday. The drug developer is
up about 2,500 percent since July, driven by strong clinical-trial
data of its eteplirsen compound for the treatment of Duchenne
The stock has been paused more recently, allowing its 100-day
moving average to catch up with the share price. That could be
leading some traders to believe that it's ready to continue higher.
Total option volume in SRPT was 8 times greater than average
yesterday, with calls outnumbering puts by a bullish 15-to-1 ratio.
(A version of this post appeared on
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