MDRNA Draws Bullish Options Trade

By David Russell, reporter at OptionMonster

BOTHELL, Wash. (TheStreet) -- MDRNA(MRNA), a drug developer, reported positive results for an experimental cancer treatment last week and at least one investor is positioning for a rally by summer.

OptionMonster's real-time systems detected the purchase of about 2,500 June 2.50 calls for 10 cents against open interest of 1,165 contracts. Calls account for all the options activity in the name.

The stock fell almost 1% to $1.01 on Tuesday. The stock traded as high as $1.87 on Jan. 13 after reporting the data on its propriety RNA-interference products. It then lost 23% of its value the next day and now seems to be finding support at the $1 level.

MDRNA also said it had signed a collaborative agreement with a major drugmaker, which wasn't identified.

The stock needs to rally more than 150% by expiration for the calls to turn a profit. Overall options volume in the name was about 30 times greater than average.

At the time of publication, Russell had no positions in the stock mentioned.

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