The pharmaceuticals company has fallen 40 percent in less than two weeks, but one trader is betting that long-term support will hold through early next year.
More than 5,000 January 30 puts were sold in 5 minutes yesterday, including a single print of 4,379 that went for $3.80, according to optionMONSTER's tracking systems. Open interest in the strike was just 226 contracts at the beginning of the day, so this is clearly new activity.
The put selling is looking for QCOR to stay above the $30 strike price at expiration in mid-January. The trading drove total option volume 40 percent higher than its daily average. (See our Education section)
QCOR dropped 5.29 percent yesterday to close at $34.92, just a penny above its session low and approaching a $34 support level in place since last October. Shares plummeted 22 percent from above $58 on July 10 after Citron Research questioned company claims about its flagship drug, and they fell sharply again on July 25 after Questcor's second-quarter earnings report.
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