ILMN – Illumina, Inc. – Plain-vanilla call buying activity on the biotechnology firm today indicates options investors are positioning for continued appreciation in the price of the underlying stock through August expiration. Illumina’s shares rallied 2.50% during the session to $43.53 by 2:20 pm (ET). Bullish traders purchased approximately 2,700 calls at the August $45 strike for an average premium of $1.65 per contract. Investors long the calls make money if Illumina’s shares increase another 7.15% from the current price of $43.53, surpass the current 52-week high on the stock at $45.72, and trade above the average breakeven price of $46.65 by August expiration.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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