Bruker has seen wild volatility in the last couple of weeks, but one trader is looking for that to settle down.
BRKR is up 1.42 percent to $11.81. The manufacturer of scientific instruments has been trending lower since trading above $16 at the start of May.
The stock fell sharply on July 24, gapping down from above $13 to an intraday low of $9.91 on heavy volume after issuing guidance, closing at $11.53. After the company reported earnings last week, shares popped up to just shy of $14 but closed back below $12.
Today's option volume of 3,500 contracts is all in the March 12.50 calls, which were sold for the bid price of $1.25, according to optionMONSTER's systems. The volume dwarfs the previous open interest at that strike of just 11 contracts and total average daily turnover of 150 contracts at all strikes.
The call seller is betting that volatility will subside. The implied volatility of those calls is 45 percent. The recent action has driven the 10-day historical volatility to 82 percent, while the 30-day reading is at 10-month highs above 50 percent.
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