Slowly but surely, one investor is betting that Danaher will
continue to muscle its way higher.
optionMONSTER's tracking systems detected the purchase of 5,089
January 67.50 calls for $3.90 and the sale of an equal number of
January 2015 72.50 calls for $5.10 yesterday. Volume was below open
interest at the lower strike, indicating that an existing short
position was closed and rolled forward in time.
The investor apparently owns shares in the industrial conglomerate
and is using a
to manage his or her risk. Adjusting the trade raised by $5 the
level at which the stock must be sold and lets the investor collect
$1.20 of incremental income. It also lets the trader stay in the
position for another year. (See our
DHR rose 0.22 percent to $69.47 yesterday and remains within
striking distance of its all-time high from last month. The stock
is up 24 percent so far in 2013 and has climbed in a virtually
uninterrupted ascent since the mid-1980s.
Total option volume in the name was 12 times greater than average
yesterday, with calls outnumbering puts by 39 to 1.
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