Short-Term Bulls Board the Intrexon Corp (XON) Bandwagon

Intrexon Corp call buyers expect a move north of $25

Digital Content Group
Nov 11, 2014 at 2:17 PM
facebook twitter linkedin


Ahead of Intrexon Corp's (NYSE:XON) Thursday afternoon earnings report, shares of the biotech firm have charged 8.3% higher to perch at $23.40. Fueling the rally are positive comments from Herb Greenberg on CNBC. Not surprisingly, traders are piling into XON's options pits, where call volume is running at 13 times what's expected at this point in the session.

Digging deeper, the equity's 30-day at-the-money implied volatility has spiked 25.1% to 20.3%, signaling elevated demand for short-term strikes. Most active is XON's November 25 call, where roughly 1,100 calls are on the tape. The majority have traded at the ask price, and just 16 contracts exist here, making it safe to assume new bullish bets are being initiated.

Long story short, today's traders anticipate Intrexon Corp (NYSE:XON) will topple the quarter-century mark by the close on Friday, Nov. 21, when front-month options expire. The shares topped out at this level earlier, but haven't closed above it since July 11. As such, delta on the call is 0.33, signifying a 1-in-3 chance the option will be in the money at expiration.

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners