ImmunoGen gapped lower last month, and one investor is looking
for the drop to continue.
optionMONSTER's Depth Charge monitoring system detected the
purchase of about 2,900 November 14 puts for $0.67 and the sale of
1,754 November 15 calls for $0.82. Volume was more than 20 times
open interest at both strikes, indicating that new positions were
The trade cost about $50,000 and is highly bearish in the drug
developer. Because they own more puts than calls, the investor will
enjoy significant leverage to the downside. They also stand to lose
money if it pushes above $15 because of the calls sold short.
IMGN is off 0.68 percent to $14.62 in early afternoon trading and
is down almost 10 percent from its peaks late last month. Much of
that decline occurred on Sept. 27, when UBS initiated the stock
with a "sell" rating and assigned a $10 price target.
The shares gapped lower on that news. They attempted to rebound
last week but hit resistance at the same bearish gap, which could
be leading some chart watchers to believe that a downtrend is
Overall option volume is 10 times greater than average so far
today, according to the Depth Charge.