• 
• See all for optionMONSTER
• View Print Version

• Long-term bullish wager on MGM

• THOR 0% Rate It

Thoratec has been rallying and one investor apparently thinks that the gains will continue.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,000 August 33 calls for $3 and the sale of an equal number of July 30 calls for $5.20. Volume was below open interest in July but not August, which suggests an existing position was rolled from one contract to the other.

The investor collected a credit of $2.20 and has an additional month to profit from upside in the maker of heart devices. He or she probably entered the trade when the shares were lower and is recovering some capital while adding a month of long exposure. (See our Education section for more on how options can be used to manage positions and limit risk.)

THOR is up 1.79 percent to $35.73 in midday trading and 11 percent in the last month. The stock has been trapped in a range between $28 and $36 since November, when it gapped lower after cutting guidance.

Overall option volume is 15 times greater than average, with not a single put changing hands so far in the session.

Related Options Articles

• 
  Global selloff hits equity indexes
  5/23/2013 08:14 AM
• 
  Huge bullish trades in sector funds
  5/23/2013 05:25 AM
• 
  Cree lights up with large call spread
  5/23/2013 05:24 AM