Bulls look for upside in Varian Medical

By optionMONSTER,  September 04, 2012, 01:32:54 PM EDT

Varian Medical jolted higher this morning, and traders are betting that the gains will continue.

optionMONSTER's Heat Seeker tracking program detected the purchase of about 1,500 November 65 calls, most of which priced for $0.95 and $1. Volume was almost 5 times open interest in the strike.

VAR is up 1.19 percent to $59.49 this afternoon after trading higher by nearly 9 percent at the open. The maker of X-ray equipment and cancer-zapping photon machines has mostly fluctuated in a range between about $50 and $70 since the start of 2010.

Most of today's call buying occurred after the shares pulled back from their early peaks, reflecting a belief that they will continue to climb. Quarterly results have been mixed recently, especially with the weak euro weighing on revenue last quarter.

Also this morning, the company announced that France's Institut Curie had ordered four of its TrueBeam systems.

Overall option volume is 22 times greater than average in the name, with barely any puts trading so far.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Options

Referenced Stocks: VAR



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