CELG – Celgene Corp – Shares in Celgene rallied 3.6% on Thursday to an all-time high of $165.88 after the fourth-largest biotechnology company was raised to ‘Buy’ from ‘Neutral’ with an increased target share price of $200.00 at UBS. Options changing hands on the stock this morning suggests some traders are positioning for the price of the underlying to continue higher next week.
The most traded contracts on CELG by volume are the 13 Dec ’13 $165 strike calls, with around 2,500 calls in play against open interest of 675 contracts. Time and sales data indicates most of the $165 weekly calls were purchased at a premium of $1.99 each. Call buyers stand ready to profit at expiration next week in the event that Celgene shares top the breakeven point at $166.99. Shares in Celgene are up nearly 110% since this time last year.
