Intrexon Taking Fight To Mosquito-Borne Diseases

Intrexon, the folks that are working hard trying to kill the Zika mosquitos had some nice upside call speculation despite the fact that shares were softer in early morning trade. Shares of XON opened the session at $28.34 and sank to $28.11 in the first half hour of trade.

As shares moved back to mid-$28 range, buying of calls in XON accelerated. Most interesting to us was the active accumulation of October 33 calls, which had closed at $1.35 the night before when Intrexon had closed at $28.58.

There were several catalysts for our unusual activity call in XON: 1) the calls were in such demand that despite the 1% selloff in shares, the implied volatility of the calls was skyrocketing.   2) Demand pumped up prices too, as October 33 calls traded to $1.75 from that close of $1.35. 3) open interest (contracts traded and not closed or exercised) were a mere 26 contracts.

I was already long XON in my personal trading account, as our pharma and biotech diva, Meg Tirrell had convinced me of the massive potential for XON’s way to combat Zika.

I added stock and calls to my ownership on the October 33 call buying and for clients of NajarianFamilyOffice we added this biotech to their portfolios as well.

As many of you have noted, XON has rallied over a dollar (4%) since our Halftime Report, and I will and our brokers will take some profits after this impressive run.


**As always, you must understand how time decay and volatility affect the options I cover. I AM NOT telling any of you to buy or sell this security or any security. I tell you what I see and what I’m doing for my personal account. Our team at  trades for clients and my brother Pete and I do consult to our brokers, but you, acting on your own, must decide if the investments I describe are suitable for you.