Trader bets Navidea will stay in range

optionMONSTER

Traders are positioning for continued low volatility in Navidea Biopharmaceuticals.

More than 5,800 NAVB options have traded so far today, compared to a total daily average of 374 in the last month. The bulk of that volume came in a single call sale.

A trader sold a single block of 4,879 July 3 calls for $0.60, below the listed bid price at the time. Open interest in the strike was just 285 before today's trading began, so this is a new position.

The options weren't tied directly to any trading in the underlying shares identified by our systems today. But given that these contracts were struck at the money , it is very likely that the calls are sold against long shares.

That would result in a covered call position would be looking for low volatility , with NAVB remaining around this $3 level. (See our Education section)

NAVB is at $3 exactly this morning, unchanged on the day and continuing to trade in a tight range in place since the beginning of the year. Shares climbed from a low of $2.14 set in mid-November after hitting a high of $4.77 in July.

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