Hansen Medical ripped higher on Friday, and one investor is
confident there's no going back.
optionMONSTER's tracking systems detected the sale of 4,000 June
2.50 puts for $0.70 against open interest of just 180 contracts. If
HNSN stays above $2.50 through expiration, the trader will keep the
credit and the puts will expire worthless.
Below that level, the
would be forced to buy shares. But including the credit generated,
the effective entry price would be $1.80. (See our
HNSN, whose revenue is growing at about 50 percent annually, rose
15 percent to $2.62. The small-cap maker of robotic surgical
devices has been on a wild ride, ripping from $1.30 to $5 between
December 2010 and July, and then proceeded to lose half its value.
Friday's surge came amid a rally in the broader market and after
the company announced that it had obtained a $30 million bank line.
The shares also seem to have found support around the same $2 that
was resistance late last year, which some chart watchers may
consider evidence of a bullish uptrend.
Overall option volume was 42 times greater than average in the