Orexigen Therapeutics, Inc. (OREX) Bulls Wager On Sharp Gains

Orexigen Therapeutics, Inc. has been an on-chart dynamo since mid-October

Digital Content Group
Dec 15, 2014 at 2:06 PM
facebook twitter linkedin


Orexigen Therapeutics, Inc. (NASDAQ:OREX) has surged 3.8% to trade at $5.96, and calls are flying off the shelves at almost nine times the expected intraday clip. By the numbers, more than 7,700 contracts are on the tape, compared to 821 puts.

Buy-to-open activity is detected at the out-of-the-money December 7 call, where 3,680 contracts have been exchanged -- making it OREX's most active option. In other words, these traders are gambling on the stock to continue running higher through the end of this week, when front-month options expire.

Turning to technicals, OPK has rebounded sharply since hitting a two-year low of $3.11 in mid-October. Specifically, the stock has rocketed nearly 92% higher in roughly two months, during which it has outperformed the broader S&P 500 Index (SPX) by 32.6 percentage points.

If Orexigen Therapeutics, Inc. (NASDAQ:OREX) can maintain this positive momentum, the shares could benefit from a potential short-covering rally. After all, 32% of the equity's float is sold short, which would take more than three weeks to buy back, at typical daily trading volumes.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1