For the second time in a week, traders are selling protection in Astex Pharmaceuticals.
optionMONSTER's tracking systems show the May 4 puts dominating the early options trade in ASTX. A trader sold 2,811 contracts for $0.25 bid price. Volume was more than twice the previous open interest, so this was a new position.
He or she is betting the stock will hold above $4 through that May expiration. They're also willing to buy shares if they are below that level and they are assigned. (See our Education Section .)
ASTX rose 1.41 percent to $4.32 in late morning trading, and hit a high of $4.58 earlier in the month before dipping down to $3.81. Shares bounced off support at $3 a month ago.
Our trade scanners also detected similar put selling on Friday in ASTX's July 3.50s.
According to the optionMonster article, someone is selling naked puts at the 4 strike. This is a bullish position as the seller either wants the stock at $4 or they want it to stay above 4 so they can pocket the option premium. This is the second time optionMonster detected this activity in less than a week, and the volume on these contracts is HUGE.