Keyrx receives a vote of confidence
Keryx Biopharmaceuticals has been trading near multi-year highs, and one trader apparently believes that the stock will hold current levels.
optionMONSTER's tracking systems detected the sale of 4,000 October 8 puts in two equal-sized blocks for $0.20 and $0.25. This is clearly a new position, as open interest in the strike was just 801 contracts before the trade appeared.
This put seller is looking for KERX to stay above $8 through the October expiration in five weeks. If it falls below that strike price, the trader will face the obligation to buy shares at that level. (See our Education section)
KERX was up fractionally yesterday to close at $9 even but has pulled back since hitting $9.45 on Tuesday. The kidney-drug developer reached $9.98 in January--its highest price since 2007--and has been holding support at its 50-day moving average since early July, the last time it closed below $8.
Yesterday's put sale made up almost all the option volume in KERX, which was more than 6 times its daily average for the last month.
More From optionMONSTER
