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

Stocks

Referenced

100%

Most Active by Volume

94,745,495
  • $16.29 ▼ 0.37%
69,714,211
  • $125.01 ▼ 0.63%
67,974,829
  • $8.19 ▼ 6.93%
50,793,894
  • $46.28 ▼ 2.77%
49,509,831
  • $6.48 ▲ 1.57%
46,397,000
  • $9.71 ▼ 4.71%
42,854,002
  • $14.72 ▼ 7.19%
40,218,869
  • $2.61 ▲ 4.40%
As of 5/6/2015, 04:15 PM


Find a Credit Card

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