Puts activity surges again in Celsion

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Celsion is seeing put activity for the second day in a row.

A trader sold 6,950 January 3 puts for the bid price of $0.50 in volume below open interest of almost 10,000. He or she also bought 6,950 April 3 puts for the ask price of $1.60 against open interest of just 743, so this is a new position.

The implied volatility of those puts is 285 percent in the January contracts and 313 percent in the  Aprils. That compares with a 30-day historical volatility of 80 percent.

It appears that today's trade is a roll forward, closing the January contracts and buying the April options to get more time for the strategy to work. But it is also possible that the trader is using a calendar spread to lessen the cost of the April puts, especially in terms of that very high implied volatility.

Today's trading follows bearish put activity in the February contracts yesterday , according to optionMONSTER's systems. (See our Education section)

CLSN is down 4.1 percent to $7.02 this afternoon. Shares of the cancer-drug developer have run up from $4 in just the last three weeks, hitting a high of $8.35 on Tuesday.

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