One investor is adjusting a bullish trade in HCA, staying with
the hospital operator through late autumn.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 2,000 November 40 calls for $1.97 and the sale of an equal
number of November 36 puts for $0.90. Equal-sized blocks traded in
the August 36 puts, bought for $0.08, and the August 37 calls, sold
for $1.95, but volume was below open interest in those.
This suggests that the investor had previously sold the August puts
and bought the August calls as part of a bullish combination
strategy, which is similar to owning shares. With today's
transaction, he or she extended that wager by three months and
collected a credit of $0.80.
HCA is down 2.17 percent to $38.70 in morning trading. It roughly
doubled between early 2012 and the start of this year but has been
consolidating in a range since. The last set of quarterly numbers
beat expectations as patient admissions increased.
Adjusting the bullish combination today also gives the investor
more time for the stock to move and reduces the risk of being
assigned shares on a drop below $36. (See our
section for more on
Total option volume is 5 times greater than average so far in the
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