Sequenom report earnings tonight, and the bulls are stepping in
ahead of time.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 1,000 April 4 calls for $0.78 and the sale of an equal
number of April 4 puts for $0.40. Volume was more than twice open
interest at each strike, clearly indicating that this is new
The trade cost $0.38 and will provide the investor with
to a move higher, but the
will compel him or her to buy shares for $4 if they fall below that
strike price. The trader might be willing to that anyway, because
that level is the location of the 200-day moving average and an
area where the stock bounced earlier this year. (See our
SQNM slipped 0.68 percent to $4.36 yesterday. It started bleeding
lower in mid-2011 but has been finding support above its old highs
more recently, which could be leading some chart watchers to
believe that it's starting to turn around.
The maker of genetic-sequencing equipment faces a heavy short
interest at about 32 percent of the float, which could squeeze the
shares higher if sentiment begins to improve.
Total option volume in SQNM was 4 times greater than average
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