Sangamo Biosciences fell hard today, and some traders are
optionMONSTER's Heat Seeker monitoring system detected unusual call
buying in the drug developer, which is down 25 percent after
announcing poor Phase 2 trial results for its SB-509 diabetes
treatment. The November 3 contracts were the busiest strike, with
more than 1,000 contracts purchased for $0.90 and $0.95. Volume was
100 times previous open interest.
About 600 November 6 calls were also purchased for $0.15, but
activity was within the earlier positioning.
SGMO is trading at a $3.28 after hitting a new 52-week low of $3.13
earlier in the session. It attempted to rally on Sept. 19 after
announcing one of its compounds offered a "functional cure" for
HIV/AIDS, but the bears stepped in and it's been falling ever
The company focuses on using molecular genetics to cure disease,
and all of its potential products are in early stages of
Overall option volume in SGMO is quadruple the daily average so far
today, with calls outnumbering puts by 7 to 1.
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