Celldex attracts 3-way bullish play
A three-way bullish trade was opened in Celldex Therapeutics yesterday.
optionMONSTER systems show that a trader bought 3,000 January 26 calls for the ask price of $3.80 and sold 3,000 January 36 calls for the bid price of $1.35. At the same time, he or she also sold 3,000 January 19 puts for $2.05. Volume was above previous open interest in all three strikes, clearly indicating that these are new positions.
This combination trade--which sells puts to help finance a vertical call spread --cost just $0.40, which is the amount at risk with CLDX between $19 and $26. The maximum gain would be realized if the stock is at or above $36 at expiration in mid-January. The trader also risks having to buy shares if they are below $19. (See our Education section)
CLDX is up another 4.5 percent to $23.27. The biopharmaceutical company has been running up from $20 for the last week and from below $5 a year ago.
Just shy of 14,500 CLDX options traded in total yesterday, compared to a daily average of 1,166 in the last month.
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