The haters are coming back to Raptor Pharmaceutical.
Earlier this month investors sold the September 5 calls, accurately predicting that the drug developer would remain weak. Yesterday they added another 7,000 contracts on the short side, this time pricing them for $0.25 to $0.35, down from $0.95 to $01.05 on Aug. 2.
RPTP rose 2.46 percent to $4.59 yesterday but is down 29 percent in the last month. Most of that drop occurred in late July after the company issued test results for its DR Cysteamine kidney treatment. The news met expectations but came after a big rally in the shares, and profits have been taken.
Yesterday's call sellers are betting that RPTP will hold its current level or push lower. They probably also expect volatility to wane, which will help depress the value of the contracts.
Overall option volume in the name was more than 4 times greater than average in the session.
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