By David Russell
Neurocrine Biosciences (NBIX) has made a big move, and now the bulls are throwing in the towel.
optionMONSTER's tracking programs detected the sale of about 2,000 February 9 calls for $0.80 against open interest of just 81 contracts. The trade pushed total option volume in the drug developer to 7 times greater than average so far today.
NBIX fell 1.78 percent to $8.30 in afternoon trading but is up 34 percent in the last month, getting a lift on Oct. 8 when it was initiated as a "buy" at Jefferies. The drug developer, which issued bullish guidance in its last quarterly report on July 28, is scheduled to release its next results before the bell Friday.
The shares have now climbed back to the $8.50 level that provided support in 2006 and 2007, which could cause some chart watchers to think it will struggle to move higher in the near term. That helps explain the call selling because it will benefit from the shares remaining below $9 through expiration.
Disclosure: No position