Bristol-Myers Squibb hasn't seen $62.50 in more than a decade, and traders don't see it crossing that level in the near term.
optionMONSTER's tracking programs detected the sale of more than 10,000 January 62.50 calls, most of which priced for $0.27. Volume was twice the previous open interest, which indicates a new position was initiated.
The traders are now on the hook to deliver shares in the drug maker for $62.50 if they're above that level during the next three weeks. Below it, they keep the premium as profit. It could be done naked with a bearish bias, but was more likely joined to existing shares as a covered call . (See our Education section.)
BMY rose 0.08 percent to $ $59.63 in afternoon trading. It established a high of $61.77 last week, and has been shuffling between $57.50 and $61 since gapping higher at the end of October.
Total option volume is quadruple the daily average so far in the session.
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