Skilled Healthcare has been on a blistering ascent since the summer, and one investor is looking for the good times to continue.
optionMONSTER's Heat Seeker tracking system detected the purchase of 2,000 April 12.50 calls for $1.55 and the sale of an equal number of March 12.50 calls for $1. Volume was below open interest in March, suggesting that a long position was rolled from one contract to the other.
The move provides the investor with an additional month of long exposure to the operator of nursing homes and assisted-living facilities for a net cost of $0.55. It was the only transaction in the name so far today.
SKH rose 0.07 percent to $13.42 in morning trading. It's up more than fivefold percent from its levels in July when a negative court ruling drove the shares below $2. The company has issued bullish guidance at least twice since then, and the last earnings report on Feb. 14 beat expectations on both the top and bottom lines.
The recent weakness in the broader market sent SKH back to the levels where it peaked in mid-February, and some chart watchers may anticipate further gains.
The call roll pushed total option volume in the stock to 20 times the daily average, according to the Heat Seeker.
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