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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