Markets

Calendar spread on United Therapeutics

United Therapeutics is at its lowest price in more than 10 months, and one investor is betting against a quick rebound.

optionMONSTER's tracking systems detected the sale of more than 4,100 August 55 calls for $0.50 and the purchase of an equal number of September 55 calls for $3.10, resulting in a cost of $2.60. Volume was above open interest in both strikes.

Known as a calendar spread, the trade is designed to profit from the August contracts losing value at a quicker pace than the September options. He or she may also expect a rebound after August expiration, in which case they'll stand to profit because of the long position in the longer-dated calls. (See our Education section)

UTHR fell 3.39 percent to $49.05 yesterday and has lost one-quarter of its value in the last three months. The company attempted to rally after earnings and revenue beat forecasts on July 28, but it's still fighting a downdraft from early June when trial results on the pulmonary hypertension drug oral Remodulin disappointed investors.

Overall options volume in the name was 7 times greater than average in the session.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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