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Trade bets on end to slide in Repros

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Repros Therapeutics has pulled back from four-year highs, but one trader is betting that further downside will be limited in coming weeks.

More than 6,400 July 15 puts have been sold this morning, led by a print of 6,000 that went for $0.58, according to optionMONSTER's tracking systems. This is clearly new positioning, as the volume was well above the strike's open interest of 2,784 contracts before the session  began.

This put selling is looking for RPRX to stay above $15 through expiration in less than a month. If the stock is below that strike price, the traders will be on the hook to buy shares at that level. (See our Education section)

RPRX is up 3.31 percent to $17.15 this morning. The biopharmaceutical company had been declining in recent days, falling below its 50-day moving average, after hitting resistance around $20.50 for the second time in the last two months. Shares peaked at $21.02 a week ago, their highest level since July 2009.

Total option volume in the name today is already more than 2.5 times its full-session average for the last month.

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