Questcor Pharmaceuticals (QCOR) loses $2.10 to $34.64 and recent options trades on the Union City, CA biotech include a spread, in which 3840 March 27 puts were apparently sold on the stock at 90 cents, 2560 Mar 35 calls bought for $3.45 and 2560 Mar 42 calls sold at 95 cents. So it seems like downside March 27 puts were sold to buy a Mar 35 – 42 call spread, to open. The stock came under pressure on increasing volume today and has been relatively weak lately — down 24.3 percent from the 52-week highs seen on December 9. Today’s spread trader seems to be anticipating a rebound before the March expiration, which is in 37 days.
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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.