How put seller is playing Acadia Pharma
Acadia Pharmaceuticals continues to see high volatility, but one trader apparently believes that the stock won't collapse through the first half of next year.
optionMONSTER systems show that 4,950 June 3.50 puts were sold for $0.38 yesterday. There was no previous open interest in the strike, so this is a new position.
The put seller is betting that ACAD will hold above $3.50 through mid-June 2013. The trader gets the option premium for taking that risk but faces the obligation to buy shares if they are below that strike price at expiration. (See our Education section)
ACAD jumped 13.09 percent to close at $5.01 yesterday. It dipped toward $4 in the first two days of the week but is back to levels from early last week. Shares gapped up from $2.30 to above $6.50 on Nov. 27 with positive Phase III trial data on its Pimavanserin treatment for Parkinson's disease psychosis.
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