One investor is looking for things to get interesting in
optionMONSTER's tracking systems detected the purchase of 2,145
October 21 puts for $1 and 2,145 October 30 calls for $1.15. There
was barely any open interest in either contract before the trade
The transaction resulted in a cost of $2.15 and will profit from
in the pharmaceutical stock. Known as a
, the trade comes shortly before second-quarter earnings are
released on July 25.
Option premiums often increase before big news events as the market
prices in the possibility of a rally or selloff. (See our
section for more strategies that profit from volatility rather than
MDCO fell 0.98 percent to $24.25 yesterday. The stock is up 26
percent in the last six months and is near its highest levels since
Overall option volume was 26 times greater than average in the
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