Option players were out in full force today in Celldex Therapeutics, Inc. (NASDAQ: CLDX), biotech company developing therapeutics to address devastating diseases. With that said, we saw 5.2 times normal options volume, as the stock price soared more than 9% higher. On an average day, Celldex Therapeutics Inc. trades approximately 400 calls per day. However, today we saw more than 2,500 calls trade, with the majority of those options being bought.
Interesting Options Activity
For example, one order that really caught traders eyes was right near the close, as an option player came in and bought more than 1,500 April 4 calls for $0.10 a contract. At the time the order went through, the stock was trading around $3.73 per share. Not only that, but there were some May 4 calls that were bought for $0.15, within the first half hour of day, when the stock was trading around $3.50 per share.
In addition, the options that traded today were new positions. We know this because the April 4 calls had an open interest of 653 contracts going into the day. We also know that the options were bought, because at the time of the order, the bid/ask spread was $0.00 at $0.10, so we know that trader lifted the offer and bought the contracts. Not too shabby, considering the options implied volatility hit a 52-week low today. In other words, those options were relatively the cheapest they have been over the last year, in terms of volatility.
You know what else?
In order for these option players to break even, they would need the stock price to close above $4.10 on the expiration date. That means the stock price would need to rise another 10+% from today’s close. Interestingly, these option players see this moving happening before the company releases earnings on May 8, 2017.
What You Need to Know About CLDX
- There was unusual call option activity in CLDX, with an option player coming in and buying 1,500 contracts for the $4 calls expiring in April.
- The stock had a 52-week range between $2.85 and $5.13.
- CLDX is still over 25% below its 52-week high, but it’s 30.18% above its 52-week low.
- Stock has been up nearly 15% over the past week.
- The company has 120.99M shares outstanding, and 16.38% shares short.
- Celldex Therapeutics grew its revenue by 5.60% quarter over quarter, and its EPS by nearly 10% quarter over quarter, according to its last quarterly financial results.
- CLDX completed its acquisition of Kolltan Pharmaceuticals, which added another unique platform to the company’s pipeline.
- The company has multiple drugs in various stages of trials, and if the data is positive in those, the stock could rise.
Here’s a look at CLDX’s performance:
The Bottom Line
We saw some buying in Celldex Therapeutics options today, and the order shouldn’t go unnoticed. Today’s unusual options activity indicated there are some players who are extremely bullish in the name, and they could be right on the money, if some catalysts fall into place. The stock looks like it could build some momentum, and it could reach its 52-week high soon, if CLDX releases positive earnings results and data on its drugs in the pipeline.