Aegerion Pharmaceuticals has been on a monster run, and the
bulls are looking for more fireworks in July.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 5,500 July 55 calls for 7.90 and the sale of 3,860 June
50 calls for $10.50. Volume was below open interest in the June
contracts, indicating that an existing position was closed and
rolled forward in time.
Both contracts are
in the money
, giving them a strong correlation to the developer of
lipid-management drugs. Adjusting the position prevents the trader
from being assigned shares at expiration tomorrow while increasing
leverage with the
in the event of a big move. (See our
AEGR is down 1.19 percent to $61.39 in afternoon trading. It surged
about 400 percent between October and earlier this month but has
been pulling back sharply in the last week. It's now back around
the same price range where it consolidated in late May, which could
be leading some chart watchers to believe that it will
Last month's move came after management said its Juxtapid drug
could reach $1 billion of annual sales. The company also planned to
boost prices 40 percent.
Total option volume is almost triple the daily average in the stock
so far today, with calls outnumbering puts by 16 to 1.
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.
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