Traders Betting on Biotech Sangamo BioSciences, Inc (SGMO)

Sangamo BioSciences, Inc (SGMO) is a biopharmaceutical company that is developing drugs for the treatment of HIV and AIDS. The company’s stock is currently trading around $13.60 in a 52 week range of $6.86-$24.69. The stock has been underperforming the market this year with shares falling just over 2% year to date. Options traders seem to think this trend will reverse as order flow has been decidedly bullish during today’s session. Earlier this morning a trader bought 4,170 SGMO Jun 15 calls for $0.70. This is a very bullish order and this block represents volume over 4 times the average daily volume in SGMO. Although the stock is below the cloud recent price action in SGMO has been relatively bullish in the past few sessions. With order flow this strong SGMO may be setting up well for a long position.

Block Trade: Trader Bought the SGMO Jun 15 Calls for $0.70
Risk: $70 per 1 lot
Reward: Unlimited
Breakeven: $15.70