Thermo Fisher draws bearish play at highs

optionMONSTER

Thermo Fisher Scientific shares are on pace for a record close, but a downside position dominates option activity in the name today.
 
A trader bought 2,550 March 90 puts for $6.63 and sold the same number of March 75 puts for $1.93, according to optionMONSTER's Depth Charge tracking system. Volume was well above previous open interest below 100 contracts at each strike, clearly indicating new activity. 

This put spread costs the trader $4.70, which is the amount at risk if shares remain above $90. The maximum gain would be $10.30 if the stock is below $75 at expiration. (See our Education section)

TMO is up 0.38 percent to $90.74, which would be an all-time closing high. The company, which makes laboratory testing equipment, reached a record intraday high of $92.29 last Wednesday. Shares were below $75 in March and were under $55 a year ago.

More than 5,400 TMO options have traded so far today, compared to a daily average of just 961 contracts in the last month.


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