Cypress Bioscience: About To Reverse Course?
Cypress Bioscience, Inc. (CYPB) is a favored stock for selling covered calls. But on Thursday (8/14) and Friday (8/15) last week, 1,000 Dec. call options and 1,000 Dec. put options at the strike price of $7.50 were purchase on each of these two days.
This may be indicative of an upcoming event between now and December, which could result in a dramatic price move in the stock, either up or down. The million dollar question is in what direction?
In search of clues, the open market purchase of 10,000 shares at $7.50 on June 10 [the day after the Annual Meeting of Stockholders] by a trust with indirect beneficial ownership for Michael Walsh, CYPB Executive Vice President/Chief Commercial Officer stands out. Mr. Walsh was the founder, president and CEO of Proprius Pharmaceuticals, which was recently acquired by CYPB in March this year.
A second clue is provided by Technical Analysis. CYPB appears to be near the intersection of two Fibonacci fan lines and a Fibonacci arc, which may also be indicative of a change in price direction.
click to enlarge
Disclosure: Long CYPB
Related Articles
|
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »
Trading Center
- Free E-Newsletters
- About Seeking Alpha
- About Us
- Contact Us
- What's New
- Readers Feedback
- Advertise With Us
- Contributors
- Contribute an Article
- Feature Your Book
- Our Contributors
- Anonymous Contributions
- Dispute an Article?
- Legal
- Terms of Use
- Privacy
- Copyright
This article has 1 comment:
- jegan ;-)
- 688 Comments
Aug 21 06:03 PMMore by Badger The Lion