Community Health attracts buyers

By
A A A

A large trader is hoping for a strong quarterly report from Community Health Systems later this month.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 5,400 September 49 calls yesterday, most of which priced for $2.05. Volume dwarfed open interest of just 55 contracts, which indicates that new money was put to work.

Long calls lock in the price where investors can buy a stock, provide a relatively inexpensive way to profit from a rise in the stock. Traders use them to avoid missing a rally while limiting the risk, but the contracts can expire worthless if shares stall or drop. (See our Education section)

CYH fell 2.85 percent to $44.93 yesterday, surrendering early gains as the broader market headed lower. The hospital operator had surged more than 8 percent in the preceding session after rival HCA pre-announced strong quarterly results and raised full-year guidance.

Community Health is slated to report its numbers after the closing bell on July 31. Total option volume was 6 times greater than average in the session, with calls outnumbering puts by a bullish 33-to-1 ratio.



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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: CYH

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Lies Retailers Tell
Lies Retailers Tell                 

Stocks

Referenced

100%

Most Active by Volume

41,356,970
  • $42.38 ▲ 5.48%
36,767,354
  • $103.74 ▲ 1.24%
24,105,205
  • $16.63 ▲ 0.18%
23,911,102
  • $8.185 ▲ 0.18%
20,371,194
  • $12.545 ▲ 4.28%
18,976,540
  • $79.35 ▲ 0.84%
17,312,364
  • $9.335 ▲ 0.81%
16,356,688
  • $96.98 ▲ 0.11%
As of 10/22/2014, 12:06 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com