Trader bets on floor beneath Celldex

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Celldex has fallen sharply from multi-year highs reached last month, but one trader believes that any further losses will be limited for the biopharmaceutical company.

More than 6,200 February 4 puts traded in a strong selling pattern for $0.15 and $0.20, according to optionMONSTER's tracking systems. Open interest in the strike was just 121 contracts at the start of the session, so these are new positions.

The put sellers are looking for CLDX to be above the $4 strike price at expiration in mid-February. Below that level, the traders are on the hook to buy the shares. (See our Education section)

CLDX is down 3.14 percent to $5.24 after breaking below its 100-day moving average yesterday. The stock hit $6.71 on Oct. 5, its highest intraday price since June 2010, but is now testing recent support levels.

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