The bulls piled into CareFusion yesterday, looking for the
medical-equipment stock to hit record highs.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of about 3,600 October 40 calls, most of which priced for $0.45.
Volume was more than 30 times previous open interest at the strike.
lock in the price where shares can be purchased, allowing investors
to position for gains inexpensively while limited potential losses.
But these contracts could expire worthless if shares remain below
$40 through mid-October. (See our
section for more on how to maximize gains and minimize risk with
CFN rose 2.04 percent to $37.94 yesterday and is up 33 percent so
far this year. The stock's all-time peak is $39.38, so yesterday's
traders expect new highs in coming weeks.
Overall option volume was 17 times greater than average in the
session, with calls accounting for a bullish 89 percent of the
(A version of this post appeared on
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.