HCA has pulled back, and the bulls are stepping in.
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 2,800 March 26 calls for 0.80 and the sale of an equal
number of March 28 calls for $0.25. The trade resulted in a cost of
about $0.55 and accounted for most of the option volume in the
Known as a
bullish call spread
, it will earn a maximum profit of about 264 percent if HCA closes
at or above $38 on expiration. (See our
HCA rose 0.36 percent to $25.17 yesterday and has been fighting its
way higher since getting hammered along with the rest of the market
last summer. It received a
bullish combination trade
in mid-December and
early in the year. Both trades generated huge gains after the
company reported strong earnings on Feb. 6 and announced a $2
Since then it has pulled back but seems to be making a higher low
and is holding support at its 30-day moving average. That could
make some chart watchers believe that further gains are coming.
Overall option volume was more than twice the average amount
yesterday, with calls outnumbering puts by 30 to 1.