EARN25

What's Behind the MannKind Corporation Call Buying?

MannKind Corporation (MNKD) has gotten demolished in recent months

Apr 10, 2015 at 10:49 AM
facebook X logo linkedin


MannKind Corporation (NASDAQ:MNKD) is generating negative buzz this morning, as traders fret over recent news that top executives are dumping shares. At last check, though, MNKD was up 0.2% at $5.26 -- potentially good news for recent call buyers.

Specifically, during the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open nearly 17 calls for every put. The resultant call/put volume ratio of 16.91 ranks in the 97th percentile of its annual range.

However, it's possible these call buyers are short sellers in disguise. With nearly 35% of MNKD's float sold short, shorts may be hedging their bearish positions with long calls, in the event of an unexpected rally.

On the charts, MannKind Corporation's (NASDAQ:MNKD) fall has been fast and furious. So far this year, the stock has traded as high as $7.88 in early February, but has since plummeted 33% to its current perch. On a relative-strength basis, MNKD has underperformed the S&P 500 Index (SPX) by nearly 26 percentage points over the last two months.

MNKD Short Interest

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!