C/W's Najarian: Two Options with Upside Potential (NKTR, BDK)
Options guru Jon Najarian scours the markets for unusual trading activity, ready to pounce on opportunities that signal trading entries. Here, he ferrets out two companies that have recently seen an upswing in interest...
Jon Najarian : Editor, ChangeWave Options Investor and Insideoptions.com
moneyshow.com
NOTE: I do not own NKTR stock or options, but thought this board might be interested in the following.
..."Nektar Therapeutics (NKTR NASDAQ GS) has recently seen unusual trading activity in its call options.
"The company hired Howard W. Robin as its new president and CEO, and since he held the same position with Sirna Therapeutics (which was recently acquired by Merck), I'd say it has an "in" with one of the largest drug companies in the world. Our unusual-volume-tracking program shows upward of 3,600 of the NKTR Feb 15 calls trading virtually exclusively on the offer price, which means they were purchased. Only 45 out of those 3,600 calls were sold on the bid, so we've got a pretty strong reading that there could be some serious upside in store.
"Tell your broker to buy the NKTR Feb 15 Calls (QNXBC) for up to 85 cents. The stock is currently trading above $14.50, so as long as this price holds for just the next few weeks, this small company could bring big profits. Set your sell stop at 50% down in case the trade turns in the wrong direction--in this case, at 40 cents."...
Then he discussed a Black & Decker (BDK NYSE) option. |
