How one bull is staying in Aegerion

optionMONSTER

Aegerion Pharmaceuticals has been ripping higher this year, and one trader is looking for even more gains.

optionMONSTER's Heat Seeker system shows that a trader sold 4,800 May 35 calls for the bid price of $11.40 against open interest of 6,095 contracts. At the same time he or she bought 4,800 June 40 calls for their ask price of $7.70 in volume far above that strike's open interest of just 264 contracts, clearly indicating new activity.

The could be a new diagonal spread but is much more likely the roll of an in-the-money call position. In the latter case, the trader is taking money off the table and moving the position out a month and to a higher strike , while maintaining a high delta position. The delta of 0.81 for the June calls means that the options will gain $0.81 for the first dollar gain in AEGR. (See our Education section)

AEGR is up 1.34 percent to $46.77 after hitting a record high of $47.10 earlier in the morning. It was below $13 at the low in August but has almost doubled from the start of 2013.


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