Small-cap drug developer ImmunoGen got crushed by a regulatory
decision last week, and one big trader thinks it won't rebound this
optionMONSTER's tracking system detected the sale of more
than 5,000 January 7.50 calls for $0.35 against open interest of
just 226 contracts. The transaction pushed total options volume in
the stock to 18 times greater than average.
The trade occurred in late morning with IMGN down $0.05 from
Monday's close. It immediately dropped and continued lower, ending
the session down 5.62 percent to $5.34.
On Aug. 27 the Food & Drug Administration rejected a request
to fast-track a license application for the cancer treatment
trastuzumab-DM1. The news caused IMGN to revoke its full-year
guidance and drove the shares lower by 38 percent.
The stock has lost almost half its value since early May and is
now trading at levels last seen in March 2009.
Tuesday's call sale represents a bet IMGN will remain below
$7.50 through expiration. If the trader is correct, he or she will
get to keep the premium.
The company is also scheduled to appear at four investor
conferences between Sept. 13 and Sept. 20, which could potentially
impact the share price. See its calendar of events for more
(Chart courtesy of tradeMONSTER)
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