Kite Pharma, Inc. (KITE) Bulls Bet On a Strong Finish to the Week

Kite Pharma Inc (KITE) call volume is running at seven times the average intraday pace

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Published on Mar 19, 2015 at 3:25 PM
Updated on Apr 20, 2015 at 5:32 PM

Kite Pharma Inc (NASDAQ:KITE) is following in the footsteps of its sector peers, gaining 17.5% this afternoon to trade at $74.65. In response, options bulls are stepping up, with calls crossing at seven times the expected intraday rate. Most popular is the March 75 call, which it appears some speculators are buying to open in hopes of KITE reclaiming the $75 level by tomorrow's close, when front-month options expire. Today, KITE's intraday high sits at $74.95.

From a wider sentiment perspective, speculators have been placing bullish bets on KITE for a while now. Over the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for instance, 2.91 calls have been bought to open for every put.

The shares have now gained over 29% in 2015 -- and have outpaced the S&P 500 Index (SPX) by nearly 17 percentage points in the past three months. Analysts have responded in kind, too, as all four covering brokerage firms deem the equity a "strong buy." Moreover, Kite Pharma Inc's (NASDAQ:KITE) consensus 12-month price target of $83.17 represents an 11.4% premium to current levels.


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