Yesterday Acadia Pharmaceuticals saw call selling as the stock fell, but today it is drawing put selling as shares gain.
Dominating this morning's trade is a single print of 5,000 March 3 puts that was sold for $0.17, according to optionMONSTER's systems. Open interest in the strike was just 10 contracts at the start of the day, so this is clearly a new position.
The put selling is a bet that ACAD will hold above $3 at expiration in mid-March. The trader is essentially selling the risk that the stock will be below that level, as he or she faces the possibility of having to buy shares if it does come in under that strike price. (See our Education section)
ACAD is up 3.85 percent at $4.85 approaching midday trading, giving up a key $5 level yesterday. Shares gapped from around $2 to above $6 last week on positive news about an antipsychotic drug.
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