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.
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