Medivation Draws Bullish 3-Way Play

Biopharmaceutical company Medivation isn’t participating in the broad market rally today, but one large option trade is bullish.

More than 8,800 MDVN options have traded already this morning, compared to a daily average of 1,300 in the last month. Almost all of the action is in a three-way spread.

A trader sold 2,750 December 52.50 calls for $3.30 against open interest of more than 3,600 contracts. At the same time, he or she bought 2,750 January 55 calls for the ask price of $3.70 and sold the same number of the January 65 calls for $0.40. The volume at each of those strikes was more than open interest, and the bid/ask spread is wide at all three strikes.

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