This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

PDL BioPharma Draws Bullish Interest

 
By Pete Najarian of OptionMonster
 
NEW YORK -- PDL BioPharma (PDLI) receives royalties from companies such as Roche and Novartis, but Wednesday it was getting some bullish attention in the option market.
 
Buyers stepped in during CNBC's "Halftime Report," snapping up the May 10 calls for 30 cents. OptionMonster's tracking systems show that more than 3,200 were purchased vs. previous open interest of just 111 contracts, clearly showing that the trades are new positions.
 
These calls lock in the price where the drug developer's stock can be bought, letting investors cheaply position for a rally. The options can also generate significant leverage if the shares move higher.
 
PDL's shares rose 1.22% to $9.15 Wednesday, hitting a new 52-week high during the session. The company gets paid on worldwide net sales of products including Avastin, Herceptin, Lucentis, Xolair, Kadcyla, Tysabri, Actemra, and Perjeta.
 
This is not a name I am familiar with at all, but the May upside paper did cause me to take a look. It has a large short position as well.
 
Total calls outpaced puts by 3,600 to just 45, a reflection of the session's bullish sentiment. Overall option volume was eight times greater than average.
 
Najarian owns PDLI calls.

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%
TSLA $226.03 0.00%
YHOO $42.51 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports