Trader takes another shot at OraSure

By
A A A

Put volume surged in OraSure Technologies as an investor looks to salvage a poorly timed bet.

Some 1,928 August 12.50 puts were bought for $1.85 against existing open interest. An equal number of September 12.50 puts was sold at the same time for $2.05 in a new opening trade. That suggests an existing position was rolled from one contract to the other.

OSUR rose 0.28 percent to $10.70 in afternoon trading. It surged from about $10 to $14 early last month after the Food and Drug Administration approved its in-home HIV test but has been pulling back since then.

Today's investor probably sold those August 12.50 puts after the rally, looking for the shares to remain above $12.50. But now that they've pushed lower, he or she is rolling the position forward by one month. That gives more time for the stock to rebound, and lets them collect a $0.20 credit while they wait.

The next scheduled event that could serve as a potential catalyst for the shares is the release of second-quarter results after the bell tomorrow.

Overall option volume is more than 5 times greater than average so far today.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: OSUR

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

Most Active by Volume

80,161,143
  • $17.655 ▲ 0.71%
51,827,470
  • $25.66 ▲ 2.07%
50,196,937
  • $112.27 ▼ 0.34%
47,562,867
  • $7.31 ▲ 1.95%
43,526,117
  • $8.16 ▲ 7.23%
42,712,575
  • $7.11 ▲ 7.08%
41,650,917
  • $104.71 ▲ 0.82%
40,681,419
  • $10.01 ▼ 0.60%
As of 12/19/2014, 03:37 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com