optionMONSTER’s Heat Seeker monitoring program detected the purchase of 2,000 April 16 calls for $1.18 and the sale of an equal number of March 15 calls for $1.40. Volume was below previous open interest in the nearer-dated strikes, which indicates that an existing position was closed and rolled forward in time.
Long calls lock in the price where investors can buy a stock, which allows them to profit from a rally for limited cost. Money can also be swapped from contract to another, freeing up capital while staying positioned for more gains. Yesterday’s roll, for instance, generated a credit of $0.22 and gave the trader an additional month to play ride the name. (See our Education section)
HALO rose 0.53 percent to $16.20 yesterday and is up 87 percent in the last three months. Most of that move came after management presented data on its potential cancer compound, PEGPH20, in early January.
The stock spent several weeks around $14 after the news, then followed its 30-day moving average higher. It’s also benefited from a wave of bullish sentiment in biotechnology stocks. (See our researchLAB market scanner for more)
Total option volume in the name was more than 5 times greater than average, with calls outnumbering puts by 150 to 1.