Agilent Technologies is trying to bounce, and one investor
apparently believes that it still has room to move.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of almost 10,000 February 39 calls for about $1.60 and the
sale of a matching number of February 43 calls for $0.41. Volume
was below open interest in the 39s but not the 43s, so there are
two possible explanations for the activity.
One is that the investor owns shares in the maker of scientific
equipment and had previously sold the lower-strike contracts as
part of a
strategy. Now he or she may think that the stock will go above $39
and is buying the options back to increase the exit level of the
Alternatively, both trades could have been opened. Then the
strategy is a
bullish call spread
, which will leverage a move between the two prices. (See our
section for more on how calls can be
against each other to exploit modest fluctuations in underlying
A fell 0.13 percent to $36.97 in morning trading. The stock has
been moving sideways for more than a year but is now at the lower
end of its range. That could make some chart watchers think that
support is in place and expect a rally.
The next earnings report is scheduled for after the market closes
on Nov. 19.
Overall option volume in the name is 5 times greater than average,
with calls outnumbering puts by 59 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.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.