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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Medivation Bulls Are Back for More

Stocks in this article: MDVN

By David Russell, reporter at OptionMonster

NEW YORK -- Medivation (MDVN) has already made a big move but the bulls are looking for more.

Back on May 29, OptionMonster's trade scanners detected buying in the July 50 calls for $3.50. The investor rolled a long position in those contracts Monday, selling 2,250 contracts for $5.25 and buying an equal number of August 55 calls for $5.85.

Calls lock in the price where shares can be purchased in the drug developer, letting investors cheaply position for a move higher. Adjusting the trade cost 60 cents and gave him or her an additional month of upside exposure.

The stock jumped 5.77% to $52.04 Monday and is up 11% in the last week. It rose more than 400% between November 2011 and October 2012 but has been drifting mostly sideways since then. The recent activity suggests that further gains are expected soon.

Calls accounted for more than 70% of volume, so the session's overall tone was definitely bullish. More than 8,000 contracts traded Monday, compared with the daily average of 1,200.

Russell has no positions in MDVN.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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