Cypress Bioscience Among Bullish Options

Cypress Bioscience

By Jon "DRJ" Najarian, cofounder of OptionMonster.

There is a bullish options trade today on Cypress Bioscience (CYPB Quote), which we cited for unusual trading activity before Christmas.

An institutional player sold the January 10-7.50 put spread some 4,000 times today, according to OptionMonster's tracking systems. Now when you sell a $2.50 put spread for nearly $2, it's the equivalent of buying the same call spread (7.50 - 10) for $.50. In other words, it's a bullish trade in the stock, which is up nearly 9% to $7.44 in afternoon trading.

CYPB saw unusual trading on Dec. 23, both in options and the stock itself. Volume was heavier than normal, with more than 636,500 shares changing hands versus a daily average of about 572,000 during a slow holiday week for the rest of the market. At the same time, nearly 8,000 puts traded at the January 5 strike.