Puts Sold on Celldex Therapeutics (CLDX)

Shares of Celldex Therapeutics (CLDX) are trading higher on the session by 0.48%, at $6.33. The stock has been on a tear over the past six weeks, jumping off of the 200-day moving average and rallying 48%. Shares are currently consolidating above the 20-day and 50-day moving averages.

One trader believes that the rally in CLDX is for real and is willing buy shares if it should correct lower. A short while ago, the December $5.00 put traded 2,000 times, between the bid/ask spread, for $0.20. Only three seconds later, the trader chased the bid lower, selling another block of 2,000 puts for $0.15.

With open interest of only 107 contracts on the strike, it is clear that this is new positioning.

With near-term implied and historical volatility registering 54% and 40%, respectively, the trader sold the puts at a more than fair 59% vol. And if shares fail to decline over 24% in the next few months, he or she will be handsomely reward with $70,000 in premium.

Celldex Therapeutics, Inc. is a biopharmaceutical company, which applies its Precision Targeted Immunotherapy Platform to generate a pipeline of candidates to treat cancer and other difficult-to-treat diseases. 

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.