Thoratec spent months quietly sliding lower, but on Thursday it
The maker of heart devices rallied 4.51 percent to $37.50, steadily
climbing into the closing bell. It was also the busiest volume day
in more than a month, despite muted activity in the broader market
one day before the holiday weekend.
One big options trade stood out as an investor sold about 2,000 May
35 puts against open interest of just 8 contracts. The first blocks
priced for $1.20, and then premiums fell as low as $1.05 as the
selling pressure intensified.
He or she is now on the hook to buy THOR shares for $35 if they
close below that level on expiration, but including the credit
received their entry price would be below $34. Should it remain
above the strike, they'll keep the premium as profit and the puts
will expire worthless. See our
for more on
The stock has been steadily climbing for the last decade, and now
appears to be finding support around the same $36 level that was
resistance in 2011 and 2012. That could make some traders think
it's ready to make a move higher.
Total option volume was more than 10 times greater than average in
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.