Trader sees Idenix resuming rally
A trader is positioning for Idenix Pharmaceuticals to resume its recent run higher.
optionMONSTER's tracking systems detected the sale of 5,000 January 6 calls for the bid price of $0.75 and the purchase of 2,500 February 7 calls, almost all of them for $0.85. Volume was below previous open interest in the nearer-term strike, indicating that a long position was closed and rolled forward.
The investor is paying about $0.10 to stay in the trade for another month at a higher strike price but is reducing the size of the position by half. The new long calls are looking for IDIX to rally above $7 in the next six weeks but will expire worthless if shares remain below that level. (See our Education section)
IDIX is down 2.14 percent this morning to $6.41. The drug developer's stock spiked to a 52-week high of $7.45 on Christmas Eve but has pulled back since.
Total option volume already tops 8,100 contracts today, compared to a full-session average of 742 in the last month. Only 90 puts have traded so far in the session.
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