United Therapeutics has pulled back after a strong run, and now
the bulls are returning to the name.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 1,000 November 100 calls for $6.50 and the sale of an
equal number of November 130 calls for $0.65. Volume was more than
quadruple previous open interest in each strike, which indicates
that new positions were initiated.
The investor now the right to buy the drug maker for $100 if it's
above that level on expiration but will have to sell if it goes
over $130. He or she paid $5.85 to open this
with the chance to make a profit of 412 percent based on the cost.
section for more on the leveraging power of options.)
UTHR fell 0.46 percent to $90.16 yesterday and has been drifting
lower all year after doubling in 2013. The biotechnology company
has enjoyed strong growth for its drugs that alleviate the symptoms
of pulmonary arterial hypertension. If it follows last year's
schedule, earnings will come out in late July and late October,
which provides two catalysts for the bullish spread to perform.
Overall option volume was 13 times greater than average in the
name, with calls accounting for a bullish 76 percent of the
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