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Buyers want to operate with Mindray

Posted
8/6/2012 1:21:00 PM
By: optionMONSTER
Referenced Stocks:MR

The bulls apparently want to operate with Mindray Medical as the Chinese company prepares to report quarterly results this afternoon.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,500 August 30 calls for $2.10. Volume was more than 6 times open interest in the strike, indicating new activity.

MR is up 2.32 percent to $31.32 in late morning trading. The maker of patient-monitoring equipment climbed as high as $34 by the end of the first quarter after strong financial reports earlier in the year, but the stock then pulled back through the middle of last month.

Today's options will closely track upside in the share price because they're in the money and have a delta of 0.68. If MR climbs just 12 percent to $35, those options will more than double in value.

More than 2,500 contracts have traded so far today, almost 16 times the regular daily average. Calls outnumber puts by more than 200 to 1.