Small-cap drug developer MDRNA reported positive results for an experimental cancer treatment last week, and at least one investor is positioning for a rally by summer.
OptionMonster's real-time systems detected the purchase of about 2,500 June 2.50 calls for $0.10 against open interest of 1,165 contracts. Calls account for all the options activity in the name.
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MRNA fell 0.98 percent to $1.01 yesterday. The stock traded as high as $1.87 on Jan. 13 after reporting the data on its propriety RNA-interference products. It then lost 23 percent of its value the next day and now seems to be finding support at the $1 level.
MRNA also said it had signed a collaborative agreement with a major drugmaker, which wasn't identified.
The stock needs to rally more than 150 percent by expiration for today's calls to turn a profit. Overall options volume in the name was about 30 times greater than average.
MDRNA Competes With:
Johnson & Johnson
Procter & Gamble
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David Russell is a reporter and writer for OptionMonster.