OSI Systems cratered in late 2013, but traders are looking for a
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 2,000 July 65 calls today, most of which priced for
$5.70. Volume was almost 65 times the previous open interest at the
strike, indicating that new money was put to work on the long side.
lock in the price where a stock can be purchased, letting investors
position for a rally with limited risk. They can also enjoy
significant leverage to the underlying stock because the contracts
are much less expensive. (See our
OSIS is up 3.15 percent to $62.25 in afternoon trading. The maker
of airport body scanners lost as much as half its value in December
after losing an order with Transportation Security Administration.
It's been rebounding since and reported strong earnings three weeks
The stock was in the mid-$70s before the selloff, and today's
trader is looking for a push back toward those levels. He or she
may expect the bearish price gap that occurred on Dec. 6 to be
Total option volume is 22 times greater than average so far in the
session, according to the Heat Seeker. Calls outnumber puts by more
than 60 to 1.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.