Allos Sees Options Alert (ATH)

Posted in Options 
July 8th, 2010

Allos Therapeutics, Inc. (NASDAQ: ALTH) saw a rather unusual options trade today, and the move has not been mirrored nor echoed at all by the raw trading of the common stock.

Joe Kunkle of just noted to us:

  • “Alert with a buyer of 2,000 August $7.50/$5 put spreads for $1.85, a few days after the long term uptrend going back to 2006 was broken.  The Company received EU Orphan Status for its experimental cancer drug for cutaneous T-cell lymphoma back in June, but is in early stage trials.  The FDA also gave it orphan drug status for its bladder cancer drug in May.  Put volume is 12X average on the bear spread.  With many of its trials in early stages shares are falling out of favor with impatient investors despite the promising results, it could be susceptible to a capital raising at this pace.”

What is interesting is that 2,000 contracts is a bet of 200,000 shares if you count it on a fully leveraged basis.  We have so far only seen 303,000 shares trade hands by 1:23 PM EST today and the average volume is over 1.1 million shares.

When you see moves like this, it is generally a lone trade.  Whether or not it gets followed depends upon many factors.

Allos shares are actually up 1.8% at $5.65 on the day, and the 52-week range is $4.97 to $8.79.


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