IA's Special Situation Research

Institutional Analyst: Special Situation Research

Insmed has been running hard, and traders think the move will continue.

optionMONSTER's Heat Seeker monitoring system detected the purchase of some 1,450 March 30 calls, most of which priced for $2.70. There was no previous open interest, so this is fresh buying.

These long calls lock in the price where the lung-drug developer can be purchased, letting him or her cheaply control a move higher while limiting their capital at risk. But these contracts will expire worthless in mid-March if shares remain below $30. (See our Education section)

INSM is up 2.16 percent to $21.73 in midday trading and has appreciated more than 600 percent since the summer of 2012. The company is scheduled to release drug-trial data in March, so today's traders are positioning for good news.

Total option volume is more than 9 times greater than average so far, according to the Heat Seeker.

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