Bears Don't Think Celldex Therapeutics, Inc. (CLDX) is Done Falling

Celldex Therapeutics, Inc. (CLDX) is yet another biotech victim

Apr 27, 2015 at 3:22 PM
facebook twitter linkedin

Celldex Therapeutics, Inc. (NASDAQ:CLDX) is following the rest of the biotech sector lower today, dropping 13% to trade at $26.17. In fact, the equity has been placed on the short-sale restricted list. Traders have gone to the options pits to place bearish bets, with puts crossing at three times the normal intraday pace. It appears buy-to-open activity is taking place at the May 24 put. This means traders expect CLDX to fall at least another 8.3% before front-month options expire at the close on Friday, May 15.

Put buying was popular on CLDX even before today, though. The equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.63 is only 2 percentage points from an annual bearish extreme. This means puts have been bought to open over calls at a faster-than-usual pace during the past 10 weeks.

However, analysts have a completely different take on the shares. All eight brokerage firms with coverage on the stock rate it a "strong buy."

It's rare to see Celldex Therapeutics, Inc. (NASDAQ:CLDX) struggling like this. The shares have more than doubled in the past 12 months, and have outpaced the broader S&P 500 Index (SPX) by nearly 31 percentage points during the past three months. As such, it's possible some of the recent put buying could be a result of shareholders protecting paper profits against any unexpected pullbacks.


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! 



Special Offers from Schaeffer's Trading Partners