Allergan Plc. (AGN) is bucking the overall market trend two days in a row. The stock is trading up nearly $3 today, which follows yesterday's move of $3. On December 27th, I noted the "bulls" were trying to take control of Allergan, and seemingly they have. Also, on December 22nd shares of AGN were trading around, $193, today's price of $207 is a near 7% return to investors in just under a week. (See also, Allergan Stock Showing Signs of Life)

Traders are getting involved with the options today as well, with nearly 20,000 contracts having changed hands. Looking at Put/Call volume, today is 0.46 meaning there are more Calls trading than Puts, which is directionally bullish for the underlying stock. 

The most active contracts appear to be the January 2017 $255 Calls and the February 2017 $210 Calls. The January $255 Calls traded at a price of $0.15 and the February $210 Calls traded at a price of $8.65. 

In the case of the $255 Calls, the stock would need to see a return of nearly 20% over the next three weeks for the trade to be profitable. However, with the February $210 Calls, the stock would need to trade only to a price of $218.65.
 
The Allergan chart shows that the stock could be on a course to around $220 before it would run into an area of resistance, shown by the white downtrend line. If the stock broke above the $220 resistance line, that would be a bullish indication. However, if the stock should fail and not be able to break through the $220 resistance area, you could see share prices re-test the $185 area again. 

(Interactive Brokers TWS)

With little news flow and the year winding down, it seems the bulls have taken control of this once undecided stock. Shares of AGN are down nearly 32% for 2016. Perhaps the Bulls are just a playing a game of buy low and sell high for now. 

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