Call buyers charging into Stryker
Stryker is marching to new highs, and the bulls are looking for further gains.
optionMONSTER's Heat Seeker tracking system detected the purchase of almost 1,800 December 92.50 calls yesterday, most of which priced for $0.85 and $0.90. Volume was more than twice the previous open interest, which indicates that new money was put to work.
Long calls lock in the price where investors can buy shares in the provider of medical technology. The low cost of the options helps manage risk and can generate significant leverage to a rally. (See our Education section)
SYK rose 1.29 percent to $91.40 yesterday and is up 13 percent since mid-October. Known for such products as replacement knees and hips, the company has ridden a wave of strong earnings and has beaten estimates in three of its last four quarters.
Overall option volume in the name was almost 8 times greater than average yesterday, with calls accounting for a bullish 77 percent of the total.
(A version of this post appeared on InsideOptions Pro yesterday.)
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