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Alkermes is facing bearish positions

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Alkermes has been trending higher, but the bears are active today.

optionMONSTER's Depth Charge monitoring system detected the purchase of 2,000 July 28 puts this morning, most of which priced for $0.75. Volume is almost 6 times previous open interest at the strike.

Puts lock in the price where shares can be sold in the drug company, giving them an inverse relationship to the stock price. Investors buy these options to insure long positions against declines or to speculate about a drop without the risk of short selling. (See our Education section)

ALKS is down 3.48 percent to $28.19 in morning trading. It has climbed steadily since late 2009 amid strong earnings reports.

The stock also gapped higher on April 17 after reporting positive results for a Phase 2 study of its potential drug for the treatment of major depressive disorder. The shares, however, have been trending in the last month.

Total option volume is 6 times greater than average so far today, according to Depth Charge. Puts outnumber calls by 21 to 1.

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