AMAG Pharmaceuticals (AMAG)

[surf1944]

AMAG Pharmaceuticals, Inc. (AMAG) – Call activity on the biopharmaceutical company today might have looked bullish at first glance, particularly earlier in the session when shares in the name were still positive on the day. AMAG’s shares rose 1.8% to an intraday high of $15.98 this morning, but have since slipped into negative territory, down 0.30% at $15.65 as of 1:50 p.m. One investor positioning for shares in AMAG to continue to decline appears to have initiated a synthetic put on the stock. The trader likely sold 148,800 shares of the underlying at $15.6297 each and purchased 2,300 in-the-money calls at the May $15 strike for a premium of $2.40 apiece. The long calls offer upside protection should the stock rally ahead of expiration, while gains on the short stock may amass if the price of AMAG’s shares continues to slide. AMAG Pharmaceuticals was cut to ‘underweight’ from ‘neutral’ with a reduced share price target of $12.00 from $20.00 at JPMorgan on Monday. The biopharmaceutical company reports fourth-quarter earnings ahead of the opening bell one month from today.

http://seekingalpha.com/article/321696-tuesday-options-briefs-ibb-amag-aone?source=yahoo