Is OSI Systems the comeback kid?

By
A A A
Share |

OSI Systems cratered in late 2013, but traders are looking for a comeback.

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.

These long calls 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 Education section)

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 ago.

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 filled.

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.



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:

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM