Savient Pharmaceuticals has been spiraling downward since last autumn, and one investor doubts that it will rebound.
optionMONSTER's tracking systems detected the sale of about 3,600 July 9 calls, most of which priced for $0.23. Volume was 5 times previous open interest in the strike.
SVNT fell a penny to $8.14 yesterday. It has lost more than 60 percent of its value since late October, when the company said it was no longer for sale. The red ink continued last month after quarterly results were worse than expected.
The company is in the process of launching its Krystexxa gout medication, but an analyst at Leerink Swan said after the last earnings report that demand for the drug is probably much lower than the company had anticipated.
Selling calls is common strategy when investors think a stock has limited ability to rally.
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