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Bulls look for jump-start in Agilent

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Agilent Technologies has pulled back since spiking to a 13-year high two weeks ago, but one large trader is looking for it to continue rallying next year.

optionMONSTER's tracking systems yesterday detected the purchase of 5,000 May 57.50 calls for the ask price of $2.21 and the sale of 5,000 May 47 puts for the bid price of $1.49. Volume was well above the respective open interest of 500 and 69 contracts at these strikes, indicating that new positions were established.

The resulting combination trade is highly bullish, as a rally would increase the value of the long calls while decreasing premiums of the puts sold short . But the opposite would occur if the stock falls, and with the trader on the hook to buy shares below the $47 level. (See our Education section)

Agilent, whose ticker symbol is A, rose 1.02 percent yesterday to close at $53.65. The medical-diagnostics company gapped up to $55.74 on Nov. 15 after its last earnings report--its highest price since January 2001--but has since stalled despite the announcement of a stock buyback and a dividend increase last week.

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