The haters are coming back to Raptor Pharmaceutical.
Earlier this month investors sold the September 5 calls, accurately
predicting that the drug developer would remain weak. Yesterday
they added another 7,000 contracts on the short side, this time
pricing them for $0.25 to $0.35, down from $0.95 to $01.05 on Aug.
RPTP rose 2.46 percent to $4.59 yesterday but is down 29 percent in
the last month. Most of that drop occurred in late July after the
company issued test results for its DR Cysteamine kidney treatment.
The news met expectations but came after a big rally in the shares,
and profits have been taken.
Yesterday's call sellers are betting that RPTP will hold its
current level or push lower. They probably also expect volatility
to wane, which will help depress the value of the contracts.
Overall option volume in the name was more than 4 times greater
than average in the session.
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