Markets

Call seller is betting against Affymax

Affymax has gotten pounded with the recent market selloff, and one investor doubts that there will be a quick rebound.

optionMONSTER's tracking systems detected the sale of 2,250 October 5 calls against open interest of just 132 contracts. The first blocks priced for $0.70, but premiums then fell to $0.65, where most of the big volume changed hands.

The trade reflects a belief that the drug developer will stay below the $5.65-$5.70 range through expiration. It's currently down 67.90 percent to $4.78, and has lost 32 percent of its value in the last month.

AFFY's main product is the anemia drug candidate formerly known as Hematide. Bad news about the compound in June 2010 caused the stock to lose more than two-thirds of its value. Since then it's been trading in a range, and management is trying to get Hematide approved under the name peginesatide.

Today's call selling pushed overall options volume in AFFY to 5 times greater than average so far 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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