Baxalta rose yesterday as Shire reaffirmed its acquisition plans, but one large trade is positioning for a possible drop.
optionMONSTER's monitoring system detected the purchase of 10,000 June 35 puts in one print for $2.30 yesterday. This is clearly a new position, as volume was well above the strike's open interest of 3,459 contracts before the session began.
Long puts lock in the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
BXLT rose 5.58 percent to $40.65 yesterday but is down 6 percent in the last three months. Thepharmaceutical company released mixed results on Feb. 16 and is expected to announce its next quarterly numbers on May 16.
Overall option volume in the name was 10 times greater than average yesterday.
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