Hospira has been fighting its way higher, and traders expect the
trend to continue.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 1,000 October 40 calls for $1.85 and the sale of an
equal number of September 40 calls for $1.20. Volume was below open
interest in the shorter-dated contracts, which suggests that an
existing position was closed and rolled forward in time.
lock in the price where shares can be purchased in the provider of
injectable drugs, letting investors position for gains
inexpensively while limiting the amount of capital at risk if the
stock declines. They can also generate some nice leverage in a
Rolling the position cost $0.65 and prevented the investor from
being assigned shares at expiration today. (See our
section for more on how to manage positions more effectively with
HSP is up 0.44 percent to $41.25 in morning trading and has risen
32 percent so far this year. Shares climbed after a strong earnings
report late July and then pulled back to the same $38.40 level
where they peaked in March 2012, but they have been climbing since.
Total option volume is 35 times greater than average so far in the
session, according to the Heat Seeker. Calls outnumber puts by more
than 100 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.
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