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A huge bull call spread was initiated by one OvaScience Inc (OVAS) trader today
OvaScience Inc (NASDAQ:OVAS) is taking it on the chin this afternoon, down 7% at $32.29 despite the absence of news. The drop is bringing options traders to the table -- especially on the call side, where intraday volume is running at 43 times the norm. Also, the stock's 30-day at-the-money implied volatility touched a 52-week peak of 103% earlier, hinting at increasing levels of anxiety surrounding OVAS.
Dominating the equity's options pits is activity at the June 35 and 55 calls. According to Trade-Alert, a trader bought to open 5,500 contracts at the lower-strike call for $4.86 apiece, and sold to open a matching block at the higher-strike call for $0.61 each, for a net debit of $4.25 -- or a total of more than $2.3 million (net debit * number of contracts * 100 shares per contract). By initiating the bull call spread, the speculator hopes OVAS will rally to $55 by the close on Friday, June 19 -- when the options expire.
From a wider sentiment perspective, OvaSciences Inc (NASDAQ:OVAS) has been met with extreme positivity from the brokerage bunch -- not shocking considering the stock's more than tripled in value over the last year, and recently hit a record high of $55.69. In fact, all five covering analysts give OVAS a "strong buy" rating. On the flip side, 13.7% of the security's float is sold short, which represents 8.5 sessions of trading, at the average daily volume.