A large trader appears to be rolling a call position in Abbott Labs to a later month and a higher strike price as shares continue to rally.
ABT closed yesterday at $55.71, up 0.5 percent on the day but off the session high of $56.24. Shares of the pharmaceutical company bounced off support at $55 on Friday and are not from their 52-week high of $56.84 set on the first day of the year.
Almost 12,000 each of the January 57.50 and May 60 calls traded yesterday, mostly in unison. The biggest blocks of 9,854 in each strike traded at the same time, with the January calls sold for $0.03 and the May calls bought for $0.36. The open interest at the January strike was more than 24,000 contracts, while the volume in May was twice the open interest at that strike.
With January contracts expiring at the end of the week, this is most certainly a roll of a call position to the higher strike in May. The trader is showing bullishness up to the highs from 2008.
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