Catamaran attracts more bullish bets

optionMONSTER

Catamaran is drawing bullish option activity this morning for the second time this week.

More than 12,000 CTRX options have traded so far, more than 4 times the daily average in the last month for the company, which provides health-care benefit management services. Virtually all of the action is in a three-way combination trade.

optionMONSTER systems show that a trader bought 4,000 October 50 calls for $4.57 and sold the same number of October 60 calls for $1.31 and October 45 puts for $3.36. The volume was more than twice the previous open interest at each strike, indicating that these are new positions.

The trade takes in a small credit, which will be the profit if CTRX is between $45 and $50 at expiration in mid-October. The maximum gain would come with shares at or above the $60 strike price. The risk is that the trader faces the obligation to buy shares below $45. (See our Education section)

CTRX is up 1.3 percent this morning to $48.95. Is has been basing around $48 for the last few weeks after falling from a high above $58 at the end of April.

Catamaran also attracted a bullish call spread in the July contracts on Tuesday .



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