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• L-3 Communications breaks key level
• Unusual ITT play exploits industry panic

As Shire rallied on Friday, traders appeared to have a prescription for more upside.

optionMONSTER's Heat Seeker tracking program detected the purchase of 5,000 July 97.50 calls for $6.30 and the sale of an equal number of July 110 calls for $1.55. Volume is more than 30 times open interest at both strikes.

Known as a bullish call spread , the trade cost $4.75 and will earn a maximum profit of 163 percent if the Irish drug maker closes at or above $110 on expiration. That's slightly higher than its all-time high of $108.79 earlier this year.

SHPGY rose 3 percent on Friday to close at $98.42. Shares fell after peaking in February and bounced around $92 last week. The company's earnings have been strong, but it recently got hammered after withdrawing an application to market a new drug. (See researchLAB for more)

The next earnings report is scheduled for this Thursday.

Overall option volume is 17 times greater than average so far, with calls outnumbering puts by 62 to 1.

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