Traders are sticking with Nektar Therapeutics as the drug
developer consolidates at multiyear highs.
optionMONSTER's Heat Seeker monitoring system detected the
purchase of 7,500 October 12 calls for $1.80. A matching number
of September 12 calls was sold at the same time for $1.20 against
previous open interest.
We cited the buying in the September contracts
earlier this month
for $1.25 to $1.35, and yesterday's transaction allowed them to
extend that bet position by one month at a cost of $0.60. See our
Education Section for more on how to manage trades more
effectively with options.
NKTR rose 3.05 percent to $12.16 yesterday, and has roughly
doubled since late November. The company has a wide array of
potential medicines under development, including at least five in
late-stage trials. It's spent the last two months consolidating
at levels last seen in early 2011.
Total option volume was 19 times greater than average in
Wednesday's session, with calls outnumbering puts by a bullish
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.