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How one bull is staying in Aegerion

Chris McKhann (chris.mckhann@optionmonster.com)

Aegerion Pharmaceuticals has been ripping higher this year, and one trader is looking for even more gains.

optionMONSTER's Heat Seeker system shows that a trader sold 4,800 May 35 calls for the bid price of $11.40 against open interest of 6,095 contracts. At the same time he or she bought 4,800 June 40 calls for their ask price of $7.70 in volume far above that strike's open interest of just 264 contracts, clearly indicating new activity.

The could be a new diagonal spread but is much more likely the roll of an in-the-money call position. In the latter case, the trader is taking money off the table and moving the position out a month and to a higher strike , while maintaining a high delta position. The delta of 0.81 for the June calls means that the options will gain $0.81 for the first dollar gain in AEGR. (See our Education section)

AEGR is up 1.34 percent to $46.77 after hitting a record high of $47.10 earlier in the morning. It was below $13 at the low in August but has almost doubled from the start of 2013.

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