Aegerion Pharmaceuticals has been riding a wave of optimism, and the bulls aren't done with the stock yet.
optionMONSTER's Heat Seeker monitoring system detected the purchase of 3,300 August 85 calls for $4.15 and the sale of an equal number of August 100 calls for $0.90. Volume was more than 26 times the previous open interest at each strike, indicating that these are new positions.
Known as a bullish call spread , the trade cost $3.25 and will expand to $15 if the stock closes at or above $100 on expiration. That would be a profit of 362 percent in the options from a gain of less than 30 percent in the share price. (See our Education section for more on how to magnify price swings with the leverage of options.)
AEGR fell 2.07 percent to $78.59 yesterday. The drug maker has tripled since the start of the year amid a successful launch of its Juxtapid treatment of a rare cholesterol disorder.
Analysts expect the company's sales to shoot up from $1 million in the first quarter to $4 million in the current period. On a yearly basis, revenue is forecast to total $31 million in 2013 and then spike to $144 million in 2014.
Overall option volume in the name was 7 times greater than average in the session, according to the Heat Seeker. Calls accounted for a bullish three-quarters of the total.
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