One investor apparently thinks that the easy money has already
been made in Nektar Therapeutics.
optionMONSTER's monitoring systems detected the sale of more than
5,000 May 7 calls for $0.40. Volume was 39 times open interest in
By writing calls, the investor is agreeing to sell shares of the
drug developer for $7 if they push above that level on expiration.
Including the credit earned, the sale price would be $7.40.
He or she probably owns the stock and is using that income
as a hedge
, taking some profits from NKTR's recent run higher. (See our
NKTR rose 6.94 percent to $6.16 yesterday and is up 15 percent in
the last month. Management is scheduled to present at the JP Morgan
Healthcare Conference at 11:30 a.m. ET today.
Chart watchers may also think that upside is limited at about $7
because that was an area where the stock bounced and consolidated
in June and July before continuing lower.
The call selling pushed total option volume in NKTR to 5 times
greater than average in yesterday's session.