Accuray has pulled back following a big rally, and the bulls are
taking a shot on the long side.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 3,000 March 7.50 calls for $0.91. An equal number of
March 5 puts was sold at the same time for $0.42, translating into
a cost of $0.49.
The resulting position is highly leveraged to upside in the maker
of surgical devices, controlling the equivalent of 192,000 shares
for less than one-eighth the price. The leverage will ratchet
higher if the stock moves, potentially controlling as many as
ARAY fell 0.74 percent to $6.71 on Friday. It surged about 25
percent between August and mid October following a strong earnings
report, but has now surrendered almost all the gains. That could
make some chart watchers it's now at an attractive entry point.
The investor is also on the hook to buy shares for $5 if they're
below that level on expiration. He or she could be
willing to do that
because there are several likely support levels between $5 and
$6.50. (See our
section for more on
Total option volume was 11.5 times greater than average in the
session, according to Heat Seeker. The next earnings report is
scheduled for Thursday, Nov. 7, after the closing bell.
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