Repros Therapeutics has rallied hard, and one investor is
adjusting a winning trade.
optionMONSTER's Heat Seeker monitoring program detected the sale of
1,850 November 17.50 calls for $5.92 in volume below the strike's
previous open interest, apparently closing an existing position.
The trader then bought 1,850 December 20 calls for $5.56 and sold a
matching number of December 30 calls for $2.09.
The net result is that the trader collected a credit of $2.45 and
stands to earn an additional $10 if the drug developer closes at or
above $30 upon expiration in mid-December. The new trade is a
bullish call spread
, a common option strategy used by investors seeking to generate
leverage. (See our
RPRX fell 0.97 percent to $20.34 yesterday but has more than
doubled in the last month. That move followed positive clinical
data for the company's Androxal drug for the potential treatment of
Yesterday's option transaction lets the investor lock in profits
from the rally while staying in the trade for another month.
Total option volume was triple the daily average in the session,
according to the Heat Seeker. Calls outnumbered puts by more than
14 to 1.
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