Ariad Pharmaceuticals has run sharply higher in recent days, and traders are anticipating more gains after company presentations this week.
optionMONSTER’s Heat Seeker system identified heavy buying in the September 23 calls for premiums ranging from $0.55 to $1.38 on Friday. About 2,300 contracts traded at strike, far above the open interest of just 292 before the session began, indicating that new positions were established.
These long calls lock in the price where traders can buy the stock no matter how far it might rise. But if ARIA remains below $23, the contracts will expire worthless by the end of next week.
— Option Monster