Large trade expects pop in Ventas-11/04/2009

Ventas has been grinding higher against resistance in recent months, and now one trader is positioning for a breakout in the nursing-home real-estate investment trust.

optionMONSTER's tracking systems detected the purchase of 3,900 December 45 calls for $0.60 and the sale of 3,900 December 35 puts for about $0.60. The trades came against almost no existing interest in either strike and resulted in a credit of less than $0.01 after adjusting for rounding.

VTR rose 0.57 percent to $40.73 yesterday and is up 15 percent in the last three months. The REIT inched up its full-year earnings forecast when it reported results Oct. 29.

The stock rallied from below $30 to near $40 in July and August, when it ran into an old support level from last year. Today's options trader will profit on a move above $45 and lose money if VTR drops below $35 by expiration.

Health care REITS such as VTR and HCP have been among the market's best performers in the last month, outperforming the broader REIT sector and the S&P 500.

Overall options volume in VTR is seven times greater than average today.

(Chart courtesy of tradeMONSTER)

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