Aegerion Pharmaceuticals has been powering higher, and one investor apparently thinks that the gains will continue.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 1,250 January 25 calls for $1.15 and the sale of an equal number of January 30 calls for $0.20. An equal-sized block was also sold in the December 20 calls for $1.95, but volume was below open interest in that strike.
The activity suggests that the trader came into the session owning the lower-strike calls, then closed that position and rolled it to a new vertical spread in the January contracts. He or she collected a net credit of $1 and has the right to earn an additional $5 if the stock goes to $30 or higher on expiration. (See our Education section)
AEGR is down 2.44 percent to $21.56 in morning trading. The stock gapped higher in mid-October after a Food and Drug Administration advisory panel recommended approval of the company's lomitapide drug, which is used to treat a genetic disorder that causes high cholesterol.
The shares have been consolidating since that move in October and making incremental higher lows, which could be leading some chart watchers to believe that it's still headed higher.
Total option volume is 7 times greater than average, according to the Heat Seeker. Calls outnumber puts by a bullish 10-to-1 ratio.
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