Medivation has already made a big move, and the bulls are
looking for more.
, optionMONSTER's Heat Seeker scanners detected buying in the July
50 calls for $3.50. The investor rolled a long position in those
contracts yesterday, selling 2,250 contracts for $5.25 and buying
an equal number of August 55 calls for $5.85.
lock in the price where shares can be purchased in the drug
developer, letting investors cheaply position for a move higher.
Adjusting the trade cost $0.60 and gives him or her an additional
month of upside exposure. (See our
MDVN jumped 5.77 percent to $52.04 yesterday and is up 11 percent
in the last week. The stock rose more than 400 percent between
November 2011 and October 2012 but has been drifting mostly
sideways since then. The recent activity suggests that further
gains are expected soon.
Calls accounted for more than 70 percent volume, so the session's
overall tone was definitely bullish. More than 8,000 contracts
traded yesterday, compared with the daily average of 1,200.
(A version of this post appeared on
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