Biogen Idec Inc. (BIIB) $52.20 +0.00%
Biogen Idec (BIIB) shares rose 2 percent to $52.20 and options volume rose to 6X the normal levels. Some of the activity was due to a substantial Apr/July 50 put spread that traded 6500X for about $3.30 on the NYSE in morning trading. Looking at open interest numbers, it look like both legs opening and, if so, the strategist might expect the stock to drift lower and or hold around 50 through the April expiration (14 days). In other words, they are looking to pocket the high premium in the April 50s and using the July 50s as a hedge.
Category: All Stocks, Large Cap Stocks, Pharmaceuticals & Biotechnology
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About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.
