It's only September, but traders are already looking to next
year for a rally in Hologic.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 2,000 March 22 calls for $1.20. Equal-sized blocks were
sold at the same time in the March 18 puts for $0.85 and the March
25 calls for $0.35. Volume was more than 5 times open interest at
all three strikes, indicating that new positions were initiated
across the board.
The strategy combines elements of a
, letting the investor implement the trade for essentially nothing.
He or she now stands to collect $3 if the medical-device stock
closes at or above $25 on expiration. (See our
HOLX is off fractionally at $20.43 this afternoon but has been
slowly working its way higher since the market bottomed in 2009. It
leapt in July after naming a new CEO and then fell one month later.
The shares have been building support above $20 for most of
It bottomed around $18.50 in both December and early July, which
could make today's trader think that level will now be support.
That would also help explain why they wrote puts at the 18 strike.
Total option volume is 17 times greater than average so far today,
according to Heat Seeker, with that bullish three-way accounting
for almost all the activity.