Geron is surging today with positive regulatory news on a key drug candidate, and one trader apparently believes that those gains will hold.
optionMONSTER systems show that 2,000 December 2 puts were sold for $0.15 and another block of 8,000 for $0.10 this morning. These are clearly new positions, as previous open interest was 800 in the strike.
The put seller keeps the credit from the sale and is betting that GERN will stay above that $2 in coming weeks. If the stock falls below that strike price, the trader takes the risk of having to buy 1 million shares.
— Option Monster