Endo International has had a huge pullback, and the bulls are
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 3,000 January 60 calls for $8 yesterday, plus the sale
of 3,000 contracts each in the January 45 puts for $3.30 and the
January 70 calls for $4.20. Volume surpassed open interest in all
three strikes, indicating that new positions were initiated.
The strategy cost just $0.50 to implement and will inflate to $10
if the drug maker closes at $70 or higher on expiration early next
year. Selling the puts reduces the cost of the overall position but
could also force the investor to buy shares for $45 if they fall
below that level. (See our
section for more on the strategy, which combines a
ENDP rose 2.52 percent to $57.70 yesterday. It peaked above $80 in
February, only to skid lower as investors dumped pharmaceutical
companies. The stock is now attempting to hold support at its
200-day moving average and the same level where it gapped higher
after a strong earnings report in November.
The next quarterly release comes out May 1 before the opening bell.
Total option volume was 7 times greater than average in the
session, according to the Heat Seeker.
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