Options Recap: Merck, Cubist, Leap Wireless
OptionMonster co-founder Pete Najarian provides options picks Monday, Wednesday and Friday in TheStreet.com's Deep in the Money Calls newsletter.
By David Russell, a reporter at OptionMonster .
Frontier Oil (FTO): The oil company has given up about 30% of its value since the beginning of June when the price was above $18.
Plains Exploration (PXP): The oil and gas company is down 17% in the past month, and at least one large trader is betting on further downside.Sigma Designs (SIGM): The company is down more than 13% from its recent high, allowing one trader to take profits and maintain a bet against the semiconductor company. Merck (MRK): Shares of the pharmaceutical company are trying to claw back some of the losses from Thursday, but the options action is bearish. Cubist (CBST): The pharmaceuticals company will report earnings next week, and one trader is positioning for a bumpy ride in the shares. Monday Pre-Market: A closer look at bid/ask spreads: A reader recently asked how and why bid/ask spreads vary for different strikes and underliers. To explore the issue, we compare the cases of U.S. Steel (X) and AmBev (ABV) calls. Leap Wireless (LEAP): The wireless carrier is down 19% in the past month, prompting traders to bet on a rebound. ICICI (IBN): The Indian bank is near its highs and seeing some interesting options trading as both puts and calls light up our systems. Infosys (INFY): At least one big investor thinks the outsourcing firm is headed lower after it enjoyed four months of gains and ran up against potential resistance at $37.50.
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