U.S. Markets closed

Repros sees second day of put selling

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Repros Therapeutics rarely shows unusual option activity, but on Monday it saw strong put selling for the second straight session.

More than 1,800 February 15 puts were sold as premiums fell from $1 to $0.80, optionMONSTER's tracking systems show. The volume was well above the strike's open interest of 474 contracts at the beginning of the day, indicating new activity.

The put sellers are looking for the biopharmaceutical company to stay above the $15 strike price at expiration in mid-February. If shares are below that level at that time, the traders face the obligation to buy the stock at an effective price of about $14 once the credit from the option sale is included. (See our Education section)

RPRX rose 3.19 percent on Monday to close at $15.87. That gain pushed the stock above resistance that has been in place since shares fell from their 52-week high of $17 in early October.

Total option volume in the name was 2,866 contracts, 7 times its daily average for the last month. On Friday traders were selling puts at the January 15 strike .

More From optionMONSTER