An options trading investor is buying and selling options on biotech firm BioMimetic Therapeutics (NASDAQ: BMTI) as its stock drops to what might be a support level.

OptionMONSTER’s Heat Seeker tracking system detected a surge of activity in the BMTI June 11 Calls and the BMTI June 15 Calls, which traded for $3 and $1, respectively. The lower-strike contracts were bought and the higher ones were sold, resulting in an overall cost of $2. About 2,000 contracts traded in each.

The investor will earn twice that amount if the biotechnology stock closes at or above $15 on expiration. The position will lose money anywhere below $13.

Find more option analysis and trading ideas at Option Trading Strategies.

BMTI fell 1.10% to $11.72 yesterday and has shed 16% of its value in the last month. Most of that drop occurred after March 10, when management forecast a wider-than-expected loss for fiscal 2011. BioMimetic develops and commercializes products that stimulate the body’s natural tissue regenerative process.

The shares have now almost returned to their 200-day moving average (purple line in chart), roughly the same price where they peaked in November. Some chart watchers may expect support around this level.

Yesterday’s bullish trade, a vertical spread, pushed total options volume in BMTI to 18 times greater than average with calls accounting for 90% of the activity.

BioMimetic Therapeutics (NASDAQ: BMTI)

(Chart courtesy of tradeMONSTER)

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