Syntha Pharmaceuticals is fighting its way higher against a negative market today, and option traders see shares holding their ground.
SNTA is up 1.41 percent to $5.05, though it is off the best levels of the morning. It pushed against resistance just above $5 that held through December and July. Shares have been trending higher since hitting a 52-week low of $3.02 but still have a long way to regain their late April high above $6.
Total option volume in the name is 4,086 contracts so far, which compares to a daily average of 1,200. Almost all of that volume is in the August 5 puts, which have already seen 4,020 contracts trade.
The puts were sold for the bid price of $1. The previous open interest was just 145, so this was a new opening position.
The put selling is a bet that SNTA will hold up above $5 through expiration. The trader is also showing the willingness to buy the stock, especially given that those puts are almost in the money. If the stock falls and the trader is assigned the shares, he or she will have an effective entry price of $4 once the credit from the sale is included. (See our Education section)
More From optionMONSTER
European stocks rose for a third straight session on Monday and the euro bounced back from two-year lows, as Greek …
There are no comments yet