Iron Condor Sold on Biogen

Biogen Idec (NASDAQ: BIIB) is trading off of a fresh 52-week high, which was set yesterday, down 1.21% on the day to $58.00. The stock’s rise has been steady and it looks like any pullback in the name would be an opportunity to get long the name, however one trader is betting that Biogen will moderate and consolidate here and stay in a range from $55.00-60.00.

This trader executed an iron condor, which is by nature is two credit spreads, where they sold the April $55/50 put spread 3,000 times, as well as the April $60/65 call spread 3,000 times. The trader is betting that the stock will trade within that range of $50-65, where there will be varying profit levels depending on where the stock trades. The net credit that the trade took in was $1.80, which is the max profit the trade can make; this max profit will be taken in if the stock stays within $55.00-60.00. If the shares were to explode lower than $50 or higher than $65, then the max loss would be taken, which is $3.20 (the difference between the strikes minus the credit).

Note: Credit to Chris McKann for flagging this trade