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Large put sale in TG Therapeutics

Mike Yamamoto (mike.yamamoto@optionmonster.com)

TG Therapeutics has lost half of its market value in the last six months, but one trader is looking for a floor in shares of the biopharmaceutical company.

optionMONSTER's tracking systems detected the sale of 5,000 February 2.50 puts for $0.18 on Friday. Open interest in the strike was just 323 contracts before the session began, clearly showing that this is a new position.

The put seller will keep the $0.18 credit as profit if TGTX stays above $2.50 for the next two months. But if it falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)

TGTX rose 4.46 percent on Friday to close at $3.75. The stock hit a 52-week high of $7.75 on June 20 but fell hard in late September. It eventually found support around $3 and has been trading in an extremely tight range at current levels in recent weeks.

Friday's put sale made up almost all of TGTX's option volume in the session, pushing it to 33 times its daily average for the last month.

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