Traders are looking for a rally in Aveo Pharmaceuticals as its shares attempt to bounce off 52-week lows.
optionMONSTER's Heat Seeker tracking system shows that 1,700 December 7.50 calls traded in a strong buying pattern as premiums jumped from $0.35 to $0.60 in less than 8 minutes this morning. The volume was 12 times the strike's open interest at the start of the session, clearly indicating new activity.
AVEO is up 2.31 percent to $6.63 this morning as the stock tries to recover from a low of $5.80 reached on Friday. Shares of the cancer-drug developer have been falling steadily since hitting resistance around $11 in September, but the company recently submitted an application for its Tivozanib treatment to the Food and Drug Administration.
Today's long calls are looking for AVEO to rise roughly 20 percent in the next month. If the stock doesn't rally, however, those options will expire worthless. (See our Education section)
The trades were responsible for most of the total volume in the name so far today, which is already 49 times its full-session average. A grand total of 11 puts have changed hands, a reflection of the session's bullish sentiment.
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