Cell Therapeutics is struggling to gain ground, and one large trader is looking for a floor beneath the stock.
optionMONSTER's systems show that a trader sold 10,000 June 1 puts for the $0.20 on a wide bid/ask spread. There was no previous open interest, so this is a new position.
CTIC is flat on the day at $1.42. The cancer-drug developer was down at $1.14 earlier in the month, its lowest price since gapping up at the start of September from $0.45 to above $2.
The put selling is a bet that that CTIC will remain above the $1 strike price in coming months. The trader faces the possibility of having to buy shares if they are below that level, but at an effective price of $0.80 including the credit from the put sale. (See our Education section)
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