Vertex (VRTX) with relative weakness on light volume of 1.55 million shares. Average daily volume is about 6 million. Shares are down 39 cents to $58.17 and one investor appears to be anticpating additional weakness in the biotech. A July 45 – 52.5 put spread trades on the stock for $2.25, 2500X. The stock surged 55.4 percent following positive trial results for a cystic fibrosis drug on May 7. The rally continued through May 15 when shares moved north of $66. However, the stock lost 10.9 percent on May 29 after the company provided additional data on the drug. Today’s spread trader seems to be bracing for another volatile move in VRTX in the weeks ahead.
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.