Amylin Pharmaceuticals has been exploding higher, and the bulls are looking for more.
optionMONSTER's Heat Seeker tracking system detected the purchase of about 11,100 April 21 calls for $0.91 and the sale of an equal number of April 24 calls for $0.33. Volume was more than 8 times open interest in both strikes.
The trade cost $0.58 and will earn a maximum profit of 417 percent if the drug maker closes at or above $24 on expiration. It will also expire worthless if the stock remains below $21, a level it hasn't seen since late 2010.
AMLN is down 1.25 percent to $17.37 in morning trading but has risen 48 percent in the last month. Most of those gains came after the Food and Drug Administration approved the company's Bydureon diabetes shot. The drug is a long-acting version of an existing medicine that requires injection once a week rather than twice a day.
That rally seems to have broken a 20-month downtrend for AMLN. It had peaked above $24 in April of 2010 before it started falling, and trade reflects a belief it will now rally back to that level.
Calls outnumber puts in the name by 28 to 1.
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