Celsion Corporation (CLSN)

[biomanbaba]

SELLING the 2 puts is like printing money

Shares of Celsion are gaining this morning, and one trader is betting that the stock will hold current levels.

CLSN is up 2.76 percent to $2.24 after the drug maker announced a collaboration with the University of Oxford for a clinical trial on a proposed treatment for liver cancer. The stock is on pace for its highest close since last November after finding resistance around $2 in the last three months.

Celsion's total option volume of 4,700 contracts is 10 times its daily average. A trader sold two blocks of 1,875 October 2 puts for $0.35 and then $0.30, volume that as about 10 times the open interest at that strike.

The put selling is a bet that CLSN will remain above $2 through the October expiration. The trader is also showing a willingness to buy shares if they are below that strike but would do so for an effective price of $1.675. (See our Education section)