What Investors Are Looking For After Seeing Unusual Options Activity In Halozyme

Some recent news has Halozyme Therapeutics, Inc. HALO trending back in the right direction after a rocky 2014.

On December 17, Janssen entered into a partnership agreement to commercialize subcutaneous products using ENHAZE technology. Halozyme is also partnered with Pfizer Inc. PFE, Baxter International Inc.BAX and Roche Holding Ltd. (ADR) RHHBY.

Halozyme has several upcoming catalysts in the next few weeks, and options activity has spiked ahead of these events.

On Friday, the January 17 $10 Calls printed an 800 contract buy off the ask and 1,300 total volume on the day. On Monday, the January 17 $11 Calls printed a 2,000 contract buy off the ask near the close of the day.

Final volume on the day was 2,547, versus an open interest of only 222. The January 17 $10 calls also traded 534 more contracts on the day.

The following events could bring some volatility into the stock.

Halozyme announced that on January 7, at 10 a.m. EST, it will hold an investor conference to discuss the following: the science of PEGPH20, an update on the pancreatic cancer program, plans to evaluate PEGPH20 in Non-Small Cell Lung Cancer, and the evaluation of PEGPH20 in combination with other Immuno-oncology agents.

The company will also be presenting at the J.P. Morgan Healthcare Conference on January 13, at 7 p.m EST.

Additionally, the company will be at the ASCO GI conference between January 16 and 18. At the conference, the company will present the final progression free survival and overall survival data for its Phase 1B Study 201 trial.

That data should be lifted from embargo on January 12.

Disclosure: the author is long HALO