Pretty mixed day, with put trades and call trades about equal. But, of course, we prefer the interesting call buys. Three unusual call buys were seen in Sunedison (SUNE), Repros Therapeutics Inc (RPRX), and in Alcobra Ltd (ADHD).
Sunedison (SUNE) has been seeing steady call buying today which is a little unusual, especially given the short duration. Two of the trades have been in the September 26th weekly’s, with the first buy of 750 of the $21.50 calls at 31 cents. The second buy was 1295 of the $22.00 calls at 18 cents. Now, we see another buy of 2041 November $25 calls at the ask of 69 cents. That’s some pretty interesting action, especially the Nov $25 calls.
Sunedison (SUNE) is currently trading at $20.78 up $1.45 on the day. The stock is off it’s high of the day of $21.39, losing momentum since the call buys. SUNE has a 52 week high of $24.35, and a low of $7.70 for the year, a very wild trading range.
Sunedison (SUNE) hasn’t seen any analyst action in over a month when FBR Capital Markets initiated coverage with an outperform rating and a price target of $28.00. The average price target on SUNE is currently $25.20. Me thinks a new upgrade is coming VERY soon, likely from Cowen and Co, or GS (no not Greedy Sonsobitches, but Goldman Sachs).
Meanwhile Repros Therapeutics Inc (RPRX)saw some major crazy call buying action this morning. The kind that makes you stand up and say THANK GOD for insider trading! A trader bought 1838 January 2015 $17.50 calls at the ask of 60 cents. A rather lovely, unusual call buy for a stock that is trading at half that price currently.
Repros Therapeutics Inc (RPRX) is currently trading at $8.95 up 18 cents on the day, though well off its earlier high of $9.68 after the call buy early this morning. RPRX has a 52 week high of $29.79, and a low of $8.46 for the year. The stock got pummeled on September $17 when it could not defend it’s product with the FDA. It plummeted from the $15.00 range that day. Based on this Jan $17.50 call buy, someone has some positive insider info on RPRX and expects this one to rocket higher soon.. Is it a company insider, or an FDA official? We’ll never know, nor will the SEC.
There has now been over 2400 of the calls bought.
The third unusual call buy was in another biotech company, this time Alcobra Ltd (ADHD). A trader snapped up 699 of the November $25 calls in ADHD this morning for a staggering $6.10 per contract. Then a trader bought 628 Nov $25 calls at $6.20 later on.
Something is clearly up with Alcobra Ltd (ADHD), likely some kind of binary FDA event, and these call buyers clearly have the inside track on this. Another example of insider trading by a biotech firm, or it’s partners, or of course, an FDA official involved in the trial procedures.
Alcobra Ltd (ADHD) is currently trading at $20.75, up 38 cents so far today, and looks to to have momentum into the afternoon trading session.
We like both of these biotech call buys and are nibbling here.