Optimer Pharmaceuticals has been grinding higher, and one
investor sees little risk of a selloff.
optionMONSTER's tracking systems detected the sale of 5,000 May 15
puts for $1.20 against no previous open interest. It accounted for
all the options volume in the drug developer so far today.
The investor is now obligated to buy OPTR shares for $15 if they're
below that level on expiration. The stock is now down 1.8 percent
to $14.20, so those puts are
in the money
. Including the credit earned, however, the trader's entry price
would be $13.80.
Another interesting thing about the
strategy is that it will perform similarly to owning calls because
the puts have a strong inverse correlation to the shares. It stands
to benefit from both
and from potential upside in the stock. (See our
OPTR has been growing quickly after regulators approved its Dificid
bacteria drug last year. Chart watchers may also like the stock
because its moving averages have been lining up for a potential
rally, and it now seems to be finding support above the $14 level
where it peaked in February.
The put sale pushed total option volume in the name to 15 times the
average amount so far today.