U.S. markets open in 7 hours 41 minutes
  • S&P Futures

    4,390.25
    +10.50 (+0.24%)
     
  • Dow Futures

    34,821.00
    +100.00 (+0.29%)
     
  • Nasdaq Futures

    14,977.75
    +25.00 (+0.17%)
     
  • Russell 2000 Futures

    2,216.50
    +5.60 (+0.25%)
     
  • Crude Oil

    71.12
    -0.14 (-0.20%)
     
  • Gold

    1,809.40
    -8.70 (-0.48%)
     
  • Silver

    25.33
    -0.24 (-0.94%)
     
  • EUR/USD

    1.1879
    +0.0003 (+0.02%)
     
  • 10-Yr Bond

    1.1740
    0.0000 (0.00%)
     
  • Vix

    19.46
    +1.22 (+6.69%)
     
  • GBP/USD

    1.3896
    +0.0012 (+0.09%)
     
  • USD/JPY

    109.2120
    -0.0970 (-0.09%)
     
  • BTC-USD

    38,289.46
    -1,538.09 (-3.86%)
     
  • CMC Crypto 200

    930.37
    -30.53 (-3.18%)
     
  • FTSE 100

    7,081.72
    +49.42 (+0.70%)
     
  • Nikkei 225

    27,643.06
    -137.96 (-0.50%)
     

Huge long-term wager on Achillion

A long-term call spread dominated yesterday's option activity in Achillion Pharmaceuticals.

optionMONSTER systems show that 53,781 ACHN options changed hands in the session, compared to a daily average of just 3,445. Almost all of that action is in a January 2015 call spread .

A trader bought 25,000 of the 7.50 calls for $2.64 and sold the same number of the 20 calls for $0.39. The relative open interests were 49 and 60, so this is a new call spread. (See our Education section)

The postition cost the trader $2.25, which is the most that can be lost if ACHN is anywhere below $7.50 at expiration in 18 months. The maximum profit would be realized if shares are above $20.

ACHN was up 1.15 percent to close at $7.03 yesterday. The drug developer has been working its way higher since gapping down on July 2. Shares hit a high of exactly $20 in early 2007.


More From optionMONSTER