Geron rallied hard last year, and one large trader is betting that the drug developer will hold its ground.
optionMONSTER’s tracking systems detected the sale of 6,500 February 4 puts, most of which priced for $0.13. Volume was more than triple previous open interest, which indicates that new positions were initiated.
The put seller is now on the hook to buy shares in the biotechnology stock for $4 if it closes below that level on expiration. Above it they’ll keep the premium as profit while the contracts expire worthless. Similar trades occurred in June, September, and October.
— Option Monster