Illumina traders see resistance at key level
Someone thinks upside is limited in Illumina.
optionMONSTER's monitoring programs show that 3,450 January 205 calls were sold for $2.20. Volume was more than 420 times open interest at the strike, which indicates new money was put to work.
Short calls generate income and fix the price where a stock must be sold. (See our Coaching section.) The strategy is usually done in conjunction with long shares, reflecting a belief upside will be limited through expiration.
ILMN fell 0.81 percent to $188.47 in morning trading. The life-sciences company is up 8 percent in the last three months but faces potential resistance at its 200-day moving average. The last quarterly report on Oct. 5 was bearish and the next set of numbers have an estimated release date of Jan. 26 after the closing bell.
Overall option volume was 3 times greater than average.
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