Yesterday it was bullish, but today the activity is bearish in
optionMONSTER's Depth Charge tracking system detected the purchase
of about 6,000 October 50 puts, most of which priced for $2.72.
Roughly the same number of October 40 puts were sold at the same
time for $0.37. Volume was more than 4 times the open interest in
each strike at the start of the day, indicating that this is a new
Known as a
bearish put spread
, the trade cost $2.35 and will earn a maximum profit of 326
percent if the Anaheim, California-based drug maker closes at or
below $40 on expiration.
QCOR is up 3.53 percent to $51.88 this afternoon and more than 40
percent since the beginning of August. The shares had pulled back
sharply in July, but earnings have been good and a recent decision
by Medicaid cutting the mandatory rebate on its Achthar drug drew
buyers back to the name.
Today's bearish trade is probably the work of an investor looking
a long position. It's the complete opposite of what we saw
, when investors bought the October 55 calls and sold the October
60 calls. That trade will earn more than 400 percent if QCOR goes
to $60 or higher. (See our
Overall option volume in the name is 6 times greater than average
so far today, according to the Depth Charge. Puts account for more
than 80 percent of the total.
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