Human Genome Sciences (NASDAQ: HGSI) has garnered quite a bit of
attention in the options pits lately, as investors place their bets amid
talk of a possible buyout by GlaxoSmithKline Plc (NYSE: GSK).
On Tuesday, the biopharmaceutical issue saw roughly 11,700 puts change
hands, nearly tripling its average daily volume of fewer than 4,400. On
the other side of the Street, the security saw about 48,500 calls cross
the tape, more than quadrupling its average single-session volume of
roughly 11,300 contracts. Digging deeper into the data, it appears that
at least one investor is anticipating a moderate move higher by
initiating a ratio vertical spread with calls.