More support shown for Progenics
Traders are selling puts in Progenics Pharmaceuticals for the second time in a week.
All but 5 contracts in PGNX's total option volume yesterday was in the sale of 3,000 August 4 puts for $0.26, according to optionMONSTER's tracking systems. This is clearly a new position, as the strike's open interest was just 461 contracts before the trade appeared.
This put seller will keep the $0.26 credit as profit if PGNX stays above the $4 strike price through expiration in mid-August. If the stock is below that level, the trader will be on the hook to buy shares at an effective price of $3.74 once the credit from the put sale is included. (See our Education section)
PGNX rose 3.86 percent yesterday to close at $4.57, a day after bouncing off its 50-day moving average. Shares gapped lower on June 20 after the biotechnology company said it would issue another 8.5 million of stock. On that same day, our systems showed that a trader sold 2,500 July 4 puts .
Total option volume in the name yesterday was 7 times its daily average for the last month.
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