Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Why one trader is buying puts in Geron

Traders are turning cautious on Geron ahead of its earnings report next week.

optionMONSTER's tracking program detected the purchase of 2,000 September 2.50 puts for $0.20 at the same time yesterday. This represents fresh buying, as open interest in the strike was only 200 contracts before the trade occurred.

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)

GERN fell 0.62 percent to $3.22 yesterday but is up 13 percent in the last month. The biopharmaceutical company's next quarterly results are estimated for release after the close on April 28.

Overall option volume was 3 times greater than average in the name yesterday.



More From optionMONSTER