Are Fresh Highs Ahead for Myriad Genetics, Inc. (MYGN)?

Myriad Genetics, Inc. (MYGN) saw a pair of bull call spreads trade earlier

by

Published on Apr 10, 2015 at 2:30 PM
Updated on Apr 20, 2015 at 5:32 PM

Myriad Genetics, Inc. (NASDAQ:MYGN) calls are running at seven times the expected afternoon rate. The main reason for this uptick in activity is a pair of sizable bull call spreads that were initiated this morning, according to data from the International Securities Exchange (ISE).

Less than 10 minutes into the session, one trader bought to open a 200-contract lot of November 35 calls, and simultaneously sold to open a matching block of November 40 calls, expecting MYGN will rally up to $40 by November options expiration. About an hour later, an even more ambitious speculator bought to open 200 November 40 calls and sold to open an identical lot of November 44 calls, in the hopes the stock will reach $44 by the close on Friday, Nov. 20. It's unclear whether these two spreads are related.

Today's preference for calls merely echoes the withstanding trend -- at least, when looking at contracts in the front three-months' series. MYGN's Schaeffer's put/call open interest ratio (SOIR) stands at an annual low of 0.66, meaning short-term traders have never been so call-skewed in the last year.

At last check, Myriad Genetics, Inc. (NASDAQ:MYGN) was 0.9% higher at $36.23, and up 6.4% on the year. Historically speaking, though, the shares haven't traded above $40 since last July -- with the strike actually rebuffing a couple of rallies in more recent months -- and haven't touched $44 in six years.


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