Aegerion Pharmaceuticals has been on a monster run, and the bulls are looking for more fireworks in July.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 5,500 July 55 calls for 7.90 and the sale of 3,860 June 50 calls for $10.50. Volume was below open interest in the June contracts, indicating that an existing position was closed and rolled forward in time.
Both contracts are in the money , giving them a strong correlation to the developer of lipid-management drugs. Adjusting the position prevents the trader from being assigned shares at expiration tomorrow while increasing leverage with the long calls in the event of a big move. (See our Education section)
AEGR is down 1.19 percent to $61.39 in afternoon trading. It surged about 400 percent between October and earlier this month but has been pulling back sharply in the last week. It's now back around the same price range where it consolidated in late May, which could be leading some chart watchers to believe that it will continue higher.
Last month's move came after management said its Juxtapid drug could reach $1 billion of annual sales. The company also planned to boost prices 40 percent.
Total option volume is almost triple the daily average in the stock so far today, with calls outnumbering puts by 16 to 1.
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