One investor is looking for Express Scripts to keep its momentum
into early next year.
optionMONSTER's Heat Seeker tracking system detected the purchase
of 2,000 January 70 calls for $2.95 and the sale of an equal number
of January 60 calls for $8.75. Volume was below open interest in
the 60s, which suggests that an existing position was closed and
rolled to the higher strike.
These calls lock in the price where shares can be purchased in the
provider of pharmacy benefits. Investors use them for cheap upside
exposure, leveraging small moves and managing risk in the process.
section for more on how to make money from a stock without ever
In yesterday's case, traders had apparently made money on a
in the January 60s. Adjusting to January 70s let him or her to
collect $5.80 while remaining positioned for further gains.
ESRX rose 0.86 percent yesterday to close at $67.07, another new
all-time high. Earnings have beaten expectations for at least four
straight quarters, and the stock has been running since bottoming
around $50 in November. The next quarterly report is scheduled for
after the close next Monday, July 29.
Total option volume was twice the daily average in the session,
with calls outnumbering puts by a bullish 4-to-1 ratio.
(A version of this post appeared on
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