One investor apparently thinks that Thermo Fisher Scientific will keep running higher.
optionMONSTER's Heat Seeker monitoring system detected the purchase of 10,000 March 100 calls for $3.10 and the sale of equal-sized blocks in the March 85 puts for $3.90 and the September 90 calls for $3.10. Volume was below open interest in the September contracts, which suggests that an existing position was closed and rolled out in time.
He or she probably is probably sitting on big profits and wants to take profits. Making the adjustment out to March let the trader collect a credit of $3.90 while staying in the name for an additional six months.
The new position is also more complex because the cost was lowered by selling downside puts. The trader is now on the hook to get long the maker of scientific instruments at $85 if it closes below that level on expiration. (See our Education section)
TMO is down 0.38 percent to $92.53 in afternoon trading. It began the year near all-time highs around $65 but has rocketed 40 percent since breaking free of that level. Financial results have beaten expectations for at least four straight quarters.
That bullish three-way trade pushed total option volume to 24 times greater than average so far in the session, according to the Heat Seeker.
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