Allergan draws puts ahead of earnings
Put buying is active in Allergan ahead of its earnings report tomorrow morning.
More than 3,500 May 95 puts have traded in a heavy buying pattern for $1.40 to $1.50, according to optionMONSTER's Depth Charge tracking program. Open interest at the start of the session was just 151 contracts, so these are new positions.
AGN is up fractionally to $96.09 this morning after hitting an all-time intraday high of $97.09 on Friday. The pharmaceutical and health-care company has been rising sharply since breaking above resistance at the $90 level in early March.
Because of the stock's strong run, traders may be buying puts to hedge long positions before the earnings release. The company will announce first-quarter results in the pre-market tomorrow morning. (See our Education section)
The put activity has pushed total volume in the name to 6 times its daily average. Only 157 calls have traded at all strikes.
More From optionMONSTER
