Huge trade sees Geron holding firm


Geron has been trading sideways for nearly three months, and a large trader apparently expects the biopharmaceutical stock to hold firm.

All but a handful of Geron's total options on Friday were in a single print of 10,000 September 1 puts that sold for $0.13. This is clearly a new position, as the strike's open interest was a mere 125 contracts before the trade appeared.

The put seller is looking for GERN to hold above the $1 strike price through expiration in mid-September. If the stock falls below that level, the trader will be on the hook to buy shares at an effective price of $0.87 once the $0.13 credit from the put sale is included. (See our Education section)

GERN was down 2.63 percent on Friday, or $0.03, to close at $1.11. The cancer-drug developer, which has never closed below $1, fell sharply after its last earnings report in mid-March and has been trapped in extremely tight range since then.

The company is scheduled to present at the Congress of European Hematology Association on June 13.

More From optionMONSTER

View Comments (0)