BUY, SELL, HOLD (2)

Do These Vital Therapies Inc (VTL) Call Players Have an Ulterior Motive?

Vital Therapies Inc (VTL) is surging, and call volume has picked up in a big way

Oct 13, 2015 at 3:33 PM
facebook X logo linkedin


After starting slow out of the gate, Vital Therapies Inc (NASDAQ:VTL) shot higher just before midday, and was last seen up 14.8% at $5.27. It's unclear what's driving this price action, but that's no concern to option traders. Call volume is running at five times the normal intraday pace, as traders bet on extended gains from the biotech stock. 

Digging deeper, it appears traders are buying to open the March 2016 5.50-strike call. By doing so, these speculators are anticipating a VTL surge above $5.50 -- a level it hasn't reached since its late-August bear gap -- by March 2016 expiration. It's interesting to note the stock topped out just below this level earlier, at its intraday peak of $5.47. 

It's entirely possible, though, that some of today's call buying is at the hands of short sellers hedging their bets. Almost 16% of VTL's float is sold short. At the equity's average pace of trading, this represents more than four days' worth of buying power. 

Longer term, Vital Therapies Inc (NASDAQ:VTL) remains nearly 80% lower in 2015, due mostly to the aforementioned bear gap. These struggles may help to explain the stock's elevated levels of short interest.
 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.