Laboratory Corporation of America is breaking out to new
all-time highs, and the bulls are looking for a continued rally.
optionMONSTER's Heat Seeker tracking system detected the purchase
about 3,400 August 85 calls against open interest of 115 contracts.
Most of the volume priced for $1.85.
LH rose 2.08 percent to $81.91 in morning trading and is up 9
percent in the last month. The provider of medical-testing services
popped higher Monday after it was rumored that Merck could buy
larger rival Quest Diagnostics.
LH is climbing again today after reporting first-quarter earnings
slightly below analysts' forecasts, though investors may be giving
the company some leeway after unusually heavy snowstorms reduced
The shares spent four months consolidating around $76, but have now
surged above their previous highs established in mid-2007. They
must appreciate 6 percent for the calls purchased today to turn a
Overall options volume in LH is fives times greater than average so
far in the session, with calls outnumbering puts by 22 to 1.
(Chart courtesy of tradeMONSTER)
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